GST rate and HSN code for sugar

Quick answer

GST on sugar is 5% (HSN 1701) from 22 September 2025, whether it is sold loose or in packs. The rate did not change for plain sugar. Sugar cubes and sugar with added flavour or colour, which were at 12%, are now also 5%. Jaggery and khandsari have a separate entry that is nil when loose.

Kirana and grocery staples · HSN 1701 · GST 5% · Last checked 16 October 2026 against the CBIC notifications

HSN code and GST rate for sugar

GST rate by condition
Condition	HSN	GST	CGST + SGST	IGST	Schedule entry
Plain white or brown sugar	1701	5%	2.5% + 2.5%	5%	Notification 9/2025-CT(Rate), Schedule I, S. No. 105
Sugar cubes, and sugar with added flavour or colour	1701 91 / 99	5%	2.5% + 2.5%	5%	Notification 9/2025-CT(Rate), Schedule I, S. No. 105

In force from 22 September 2025. Inside your State, half the rate is CGST and half SGST; for a buyer in another State the full rate is IGST (same entries in Notification 9/2025-IT(Rate)). Entry wording (shortened): “Cane or beet sugar and chemically pure sucrose, in solid form”.

What changed in September 2025

Condition	Before 22 Sep 2025	From 22 Sep 2025
Sugar cubes, and sugar with added flavour or colour	12%	5%

Old rate as listed in Annexure I of the PIB release on the 56th GST Council meeting (3 September 2025).

What to print on the bill

Print HSN 1701 on every sugar line, loose or packed.
Mishri, batasha and bura have their own entry (1702 or 1704) at 5%; use that code for them.
Do not mark loose sugar as exempt in your billing software.
HSN digits: 4 if your turnover last year was up to ₹5 crore, 6 above that; up to ₹5 crore you may leave HSN off bills to unregistered buyers (Notification 78/2020-CT). More in B2C bill rules.

Common mistakes

Treating loose sugar like loose rice or atta. Sugar has no loose exemption.
Billing khandsari as sugar at 5% when it is sold loose; loose khandsari is nil under the jaggery entry.
Using 1701 for glucose powder. Glucose is heading 1702, also 5% now.

Put the right HSN and GST on every bill

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Questions about GST on sugar

Is loose sugar exempt from GST?

No. The entry for sugar (Schedule I, S. No. 105) has no packed or loose condition, so loose sugar is also 5%.

What changed for sugar in September 2025?

Plain sugar stayed at 5%. Sugar cubes and refined sugar with added flavouring or colouring moved from 12% to 5% (PIB, Annexure I).

Is khandsari sugar treated as sugar or jaggery?

Khandsari is listed with jaggery: 5% when pre-packaged and labelled and nil otherwise.

GST on jaggery and gurHSN 1701 · 5% or nil GST on gajak and chikkiHSN 1704 · 5%GST on riceHSN 1006 · 5% or nil GST on atta and maidaHSN 1101 · 5% or nil GST on dal and pulsesHSN 0713 · 5% or nil GST on poha and murmuraHSN 1904 · 5% or nil

Look up another item in the HSN and GST rate finder, or see all GST rates by category.

General information, not tax advice. Rates are taken from Notification No. 9/2025-Central Tax (Rate), dated 17 September 2025, as amended, and were last checked on 16 October 2026. The rate depends on the exact description and classification of your product: check it with your CA.