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- Updated on : September 19, 2025
HSN Chapter 17: Sugars & Sugar Confectionery Classification & GST India
HSN Code & GST Rate for Sugars, Sugar Confectionery & Bubblegum - Chapter 17
HSN Chapter 17 underwent significant transformation in the September 2025 GST reforms, with most sugar and confectionery products moving to a 5% GST rate. This change eliminates much of the complex multi-tier structure that previously ranged from 0% to 28%, significantly benefiting consumers, traditional sweet makers, confectionery manufacturers, and the sugar industry, though some exceptions like artificial honey remain at higher rates.
Key Classification Factors for Sugars & Confectionery GST Rates
- Simplified Rate Structure: Most products at 5% GST with limited exceptions
- Product-Specific Rates: Natural vs artificial products may have different rates
- Traditional vs Modern: Traditional Indian sweets favored with lower rates
- Industry-Wide Benefit: Significant cost reduction and compliance simplification
Complete HSN Code Table: Sugars & Sugar Confectionery (Chapter 17)
| GST Rate | Product Description | HSN Code | Key Import/Export HSN Codes |
|---|---|---|---|
| 5% | Cane or beet sugar and chemically pure sucrose, in solid form (including refined sugar containing added flavouring or colouring matter, sugar cubes) | 1701 | 17011200, 17011310, 17011320, 17011390, 17011410, 17011420 |
| 5% | Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, Khandsari Sugar, Rab (pre-packaged and labelled) | 1701/1702 | 17011200, 17011310, 17011320, 17011390, 17011410, 17011420 |
| 5% | Traditional Indian sweets: Palmyra sugar, mishri, batasha, bura, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana, chikkis (puffed rice, peanut, sesame, til), til patti, til revdi, sugar makhana, groundnut sweets, gajak, khaja, khajuli, anarsa | 1702/1704 | 17021110, 17021190, 17021910, 17021990, 17022010, 17022090 |
| 5% | Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; caramel | 1702 | 17021110, 17021190, 17021910, 17021990, 17022010, 17022090 |
| 18% | Artificial honey, whether or not mixed with natural honey | 1702 | 17021110, 17021190, 17021910, 17021990, 17022010, 17022090 |
| 5% | Molasses | 1703 | 17031000, 17039010, 17039090 |
| 5% | Sugar confectionary including white chocolate, not containing cocoa, sugar boiled confectionary, chewing gum, bubble gum | 1704 | 17041000, 17049010, 17049020, 17049030, 17049090 |
🍯 September 2025 GST Transformation for Sugar Industry:
- Major Simplification: Most Chapter 17 products moved from complex multi-tier structure to 5% GST
- Consumer Relief: Traditional sweets, jaggery, and most confectionery now more affordable with significant rate reductions
- Industry Boost: Sugar manufacturers, sweet makers, and confectionery companies benefit from simplified compliance and lower costs
- Traditional Sweets Support: Indian traditional products like gajak, chikki, and mishri at favorable 5% rate
- Limited Exceptions: Artificial honey remains at 18% GST, while natural products benefit from lower rates
- Export Competitiveness: Lower rates on most products boost India's competitiveness in global sugar and confectionery markets
- Small Business Benefit: Local sweet shops and traditional manufacturers gain significant cost advantages
- Compliance Simplification: Fewer rate variations reduce classification disputes and administrative burden
- Natural vs Artificial: Clear preference for natural products through differential taxation
🍭 GST Rate Examples by Category:
🍯 Basic Sugar Products (All at 5%):
- Refined White Sugar (HSN 1701): 5% GST - previously varied by packaging and branding
- Jaggery/Gur (HSN 1701/1702): 5% GST - major relief from previous complex structure
- Khandsari Sugar (HSN 1701): 5% GST - benefiting rural sugar production
- Brown Sugar (HSN 1701): 5% GST - uniform rate regardless of processing
🍬 Traditional Indian Sweets (All at 5%):
- Mishri & Batasha (HSN 1702): 5% GST - supporting traditional preparation methods
- Chikkis & Gajak (HSN 1702/1704): 5% GST - til chikki, peanut chikki, sesame chikki
- Traditional Preparations (HSN 1702): 5% GST - khaja, khajuli, anarsa, sugar makhana
🍫 Modern Confectionery (All at 5%):
- Sugar Confectionery (HSN 1704): 5% GST - candies, toffees, sugar boiled items
- White Chocolate (HSN 1704): 5% GST - not containing cocoa
- Chewing & Bubble Gum (HSN 1704): 5% GST - major reduction from previous rates
🏭 Industrial Sugar Products (Mixed Rates):
- Glucose & Fructose (HSN 1702): 5% GST - industrial sweeteners and syrups
- Molasses (HSN 1703): 5% GST - major benefit for distillery and fermentation industries
- Caramel & Sugar Syrups (HSN 1702): 5% GST - food processing ingredients
- Artificial Honey (HSN 1702): 18% GST - exception to the general 5% rate
Frequently Asked Questions (FAQs)
What are the GST rates for sugar and confectionery products in India after September 2025?
Most sugar and confectionery products under HSN Chapter 17 now attract 5% GST rate as per the September 2025 GST reforms. However, artificial honey under HSN 1702 still attracts 18% GST. This includes regular sugar (5%), jaggery (5%), traditional sweets (5%), molasses (5%), and sugar confectionery (5%), with artificial honey being the main exception at 18%.
Which HSN codes are covered under the new 5% GST rate for Chapter 17?
Most HSN codes from 1701 to 1704 now attract 5% GST: cane/beet sugar and refined sugar (1701), most products under other sugars like glucose and fructose (1702), molasses (1703), and sugar confectionery including chocolates and chewing gum (1704). The exception is artificial honey under HSN 1702 which remains at 18%.
What was the major change in Chapter 17 GST rates in September 2025?
The September 2025 reforms brought significant changes to Chapter 17 with most products moving to 5% GST rate. Previously, rates varied from 0% to 28% across different sugar products. This major simplification benefits consumers, traditional sweet makers, and the confectionery industry, though artificial honey remains at 18%.
How does the 5% rate affect traditional Indian sweets vs refined sugar?
The 5% GST rate applies equally to most sugar products - from basic jaggery (gur) to refined white sugar to traditional Indian sweets like laddu, barfi, and chikki. This eliminates most previous rate variations and creates a simplified tax structure for the sugar and confectionery industry.
Are there any exceptions to the 5% GST rate in Chapter 17?
Yes, there is one notable exception. While most products in Chapter 17 attract 5% GST, artificial honey under HSN 1702 still attracts 18% GST. This shows that even within the same HSN code (1702), different products can have different rates based on their specific nature and classification.
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Disclaimer
The HSN codes and GST Rates have been arranged as per the best of authors understanding and are subject to periodic updates as per the law for the time being in force. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions herein is not ruled out. DisyTax will not be held responsible for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document.