What is the GST rate on each Christmas and New Year item?
Food gifts are mostly 5%, decorations and paper goods 18%, and sweetened fizzy drinks 40%. The table lists what bakeries, gift shops and kirana stores sell most from mid-December to New Year, with the HSN to print.
| Item | HSN | GST rate | Condition or note |
|---|---|---|---|
| Plum cake, fruit cake, pastries, cookies | 1905 | 5% | Was 18% |
| Chocolates, chocolate gift boxes | 1806 | 5% | Was 18% |
| Toffees, candy, candy canes (no cocoa) | 1704 | 5% | Was 18% (boiled sweets 12%) |
| Dry fruits, nut gift packs | 0801 / 0802 | 5% | Fresh nuts nil |
| Ice cream, kulfi | 2105 | 5% | |
| Artificial Christmas tree, baubles, stars, tinsel, Santa figures | 9505 | 18% | Festive articles, Schedule II, S. No. 618 |
| Live Christmas tree or potted plant | 06 | Nil | Live trees and plants |
| Ceramic crib set, ornamental ceramic figures | 6913 | 5% | Schedule I, S. No. 405 |
| Fairy lights, LED strings, electric stars | 9405 | 18% | Lighting fittings and light strings |
| Candles | 3406 | 5% | Was 12% |
| Balloons (natural rubber latex) | 9503 | 5% | Schedule I, S. No. 496 |
| Board games, playing cards, chess, carrom | 9504 | 5% | Was 12% |
| Toys | 9503 | Check | Toys like tricycles 5%, electronic toys 18%; others: ask your CA |
| Greeting cards | 4909 | 18% | |
| Calendars, desk calendars | 4910 | 18% | |
| Diaries, planners, notepads | 4820 | 18% | Schedule II, S. No. 186 |
| Gift wrap (printed or decorated paper) | 4811 | 18% | |
| Paper or paperboard gift boxes, cartons | 4819 10 / 4819 20 | 5% | |
| Cola and other sweetened aerated drinks | 2202 10 | 40% | Schedule III |
| Fruit juices | 2009 | 5% | |
| Packaged drinking water, soda water | 2201 | 5% | |
| Glassware, wine and beer glasses | 7013 | 18% | Ceramic crockery 5% |
| Plastic party cups and plates | 3924 | 18% | Leaf plates nil |
| Santa dress, party wear | 61 / 62 | 5% / 18% | 5% up to ₹2,500 a piece, 18% above |
| Perfume, deodorant gift sets | 3303 / 3307 | 18% | |
| Smartwatches, earphones, phones as gifts | 8517 / 8518 | 18% | |
| Wine, beer, spirits | 22 | Not GST | Outside GST: State excise and VAT |
From the RichPOS GST rate list and the text of Notification 9/2025 and 10/2025-Central Tax (Rate), CBIC, read 4 November 2026. Inter-State sales carry IGST at the same total rate.
Why are Christmas decorations 18% when cakes are 5%?
Because they sit in different schedules. Cakes and chocolates are food in Schedule I (5%) and both came down from 18% in September 2025. Christmas trees, baubles, stars and tinsel are festive articles under heading 9505, which stayed in Schedule II at 18%.
This matters for any shop that sells both. A bakery that keeps a small rack of decorations next to the cake counter should not let the cashier bill a ₹400 star set under the cake's 5% rate: that is ₹48 of tax the shop pays from its own pocket, on every set. Keep decorations as separate items with HSN 9505 at 18%.
Two exceptions are worth knowing. A real potted tree is a live plant and nil-rated. Crib figures and ornaments made of ceramic are "statues and other ornamental articles" of ceramic (6913), which is in Schedule I at 5%. Plastic or glass ornaments are not covered by that entry; bill them as festive articles at 18% unless your supplier's invoice and your CA say otherwise.
What GST applies to party drinks and liquor at New Year?
Sweetened and flavoured aerated drinks such as cola are 40%, plain soda and packaged water are 5%, and fruit juices are 5%. Alcoholic liquor for human consumption is not taxed under GST at all; States tax it through excise duty and VAT.
So a kirana store running a New Year party pack should keep cola (40%), soda (5%), chips and namkeen (5%) and plastic cups (18%) as separate lines. A shop licensed to sell liquor bills the liquor under its State's rules and the other items under GST; ask your CA how to show both on one counter. If you sell a gift hamper with mixed items at one price, it is usually a mixed supply taxed at the highest rate inside (CGST Act, Section 8(b)): one cola can in a chocolate hamper makes the whole hamper 40%.
What is the GST on New Year diaries, calendars and planners?
Printed calendars (4910) and diaries, planners and similar paper stationery (4820) are 18%. School exercise books and notebooks are a different entry with a nil rate, so do not copy the notebook rate onto diaries.
Corporate orders for printed diaries and calendars with a company logo are common in December. A stationery shop selling stock diaries charges 18% on them. If you print the customer's own design on your paper as a job, ask your CA whether it is a sale of goods or a printing service in your case. For the notebook and register rates, see GST on notebooks and registers.
How do I bill a Christmas shopping basket with three rates?
Put every item on its own line with its own HSN and rate. Here is a worked example for a customer at a bakery and gift shop (prices before GST, same-State sale).
| Line | HSN | Value (₹) | GST rate | GST (₹) |
|---|---|---|---|---|
| 1 kg plum cake | 1905 | 600.00 | 5% | 30.00 |
| Cookies gift box | 1905 | 300.00 | 5% | 15.00 |
| Chocolate box | 1806 | 500.00 | 5% | 25.00 |
| Artificial Christmas tree, 5 ft | 9505 | 1,500.00 | 18% | 270.00 |
| Bauble and star set | 9505 | 400.00 | 18% | 72.00 |
| LED fairy lights | 9405 | 300.00 | 18% | 54.00 |
| 2 cola bottles, 2 litre | 2202 | 200.00 | 40% | 80.00 |
| 3 greeting cards | 4909 | 240.00 | 18% | 43.20 |
| Total | 4,040.00 | 589.20 |
Illustrative prices. 5% is 2.5% CGST + 2.5% SGST, 18% is 9% + 9% and 40% is 20% + 20%. Sold as one hamper at one price, the whole ₹4,040 would be taxed at 40% (₹1,616).
- Cakes, cookies and chocolates are at 5%, not last year's 18%
- Christmas trees, baubles and stars are separate items at 18% under 9505
- Fairy lights are at 18% under 9405
- Cola is at 40%, soda and packaged water at 5%
- Diaries and calendars are at 18%; notebooks keep their own rate
- Offer prices are set: GST is charged on the price after a discount shown on the bill
Selling cakes from a café counter with seating? Food served there is a restaurant service, taxed under different rules; see GST on restaurant food.