GST on Candles in India

Working out the GST on candles

Candles are taxed at a flat 5% whatever the style, so the arithmetic is straightforward. Multiply the taxable value by 5 percent to get the GST, then add it to the base price for the total.

• For an intra-state sale, the 5% splits into 2.5% CGST and 2.5% SGST.
• For an inter-state sale, a single 5% IGST applies instead.
• The calculator on this page is pre-set to the 5% rate and handles both cases.

A worked example

Suppose a candle order has a taxable value of ₹1,000 before tax. Applying 5% GST works out as follows.

GST on candles by type

Candles are classified under HSN 3406, in the chapter covering waxes and similar articles. The classification covers essentially all wax candles regardless of style. Candles were taxed at 12% until 22 September 2025, when the GST 2.0 rationalisation withdrew that slab and moved them to 5%. Handcrafted candles notified as handicraft goods are also at 5% (2.5% CGST + 2.5% SGST).

The rate change and candle sellers

For a home-based or small candle business, the reduced rate lowers the tax on finished stock and makes pricing more competitive, especially on marketplaces like Amazon and Flipkart where the GST is built into the listed price. Correct use of HSN 3406 on invoices keeps your GSTR-1 and GSTR-3B filings clean and avoids mismatch notices. If your turnover is below the GST registration threshold you may not need to charge GST at all, but selling through an e-commerce operator usually requires registration from the first sale.

Input tax credit on candle-making supplies

A registered candle business can claim input tax credit on the GST paid on raw materials such as wax, wicks, fragrance oils and containers, offsetting it against the GST collected on sales. Keep tax invoices for every input purchase, since ITC cannot be claimed without them.

Do you need GST registration to sell candles?

For a home-based or small candle business this is usually the more pressing question than the rate itself. The general threshold for goods is ₹40 lakh of annual turnover (₹20 lakh in special category states), below which registration is not mandatory. But there is a significant exception: if you sell through an e-commerce operator such as Amazon, Flipkart or Meesho, registration is generally required from your very first sale regardless of turnover. Many candle sellers discover this only after listing.

Selling on marketplaces

When you sell through a marketplace the platform collects tax at source under Section 52 and deposits it against your GSTIN, so you need to be registered for that mechanism to work. The GST is built into the price the customer sees. You then reconcile the TCS credited against your liability when filing. Keep the HSN 3406 consistent across your listings and invoices, since mismatches between what you declare and what the platform reports are a common source of notices.

Exports and related products

Candle exports are zero-rated, meaning no GST is charged on the export itself and you can claim a refund of the tax paid on your inputs, either by exporting under a Letter of Undertaking without paying IGST or by paying IGST and claiming it back. This makes exporting attractive for handcrafted candle makers. Note that related products often carry different rates: gift packaging, decorative holders and diffusers each have their own classification, so do not assume everything in a gift set shares the candle rate.

Frequently asked questions