March 2025 | India – As India gears up to celebrate Holi, the festival of colors, consumers should be aware of the Goods and Services Tax (GST) implications on various festive essentials. From colors and pichkaris to sweets and decorative items, GST affects the prices of these products.
GST on Holi Colours and Gulal
Holi colors, a must-have for the festival, fall under different GST categories based on their composition:
- Synthetic colours and gulal – 18% GST (HSN Code 3213)
- Herbal or natural colours – 12% GST, depending on the ingredients
Most commercially available colors fall under the 18% tax bracket, affecting their market prices.
GST on Pichkaris and Water Balloons
Pichkaris (water guns) and water balloons are an integral part of Holi celebrations. The GST rates on these products are:
- Plastic pichkaris and water balloons – 12% GST (HSN Code 9503)
- Electronic or battery-operated pichkaris – 18% GST
GST on Holi Sweets and Festive Foods
Sweets are synonymous with Holi, with gujiya, malpua, and thandai being festival staples. However, the GST rates on these food items vary:
- Gujiya, laddoo, and other pre-packaged sweets – 5% GST (HSN Code 2106)
- Milk-based sweets like rabri and kheer – 5% GST
- Unpackaged sweets from local vendors – Exempt from GST
- Thandai (a milk-based festive drink) – 12% GST
GST on Dry Fruits and Festive Gift Packs
Dry fruits and customized gift hampers are popular Holi gifts, and their GST rates are as follows:
- Loose dry fruits (almonds, cashews, raisins, etc.) – 5% GST
- Pre-packaged dry fruits – 12% GST
- Gift hampers containing chocolates, sweets, and other items – Taxed based on the highest-rated item in the hamper
GST on Holi Decorations and Accessories
Decorative items also attract GST, impacting festival preparations:
- Plastic or paper decorations – 12% GST
- LED lights and decorative lamps – 18% GST
Conclusion
The festive spirit of Holi comes with an additional cost due to GST on essential items. Consumers and businesses should stay informed about these tax rates to plan their purchases accordingly. With rising costs, buyers are advised to compare prices and look for budget-friendly options while celebrating the festival of colors.
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