The candle making industry in India has grown rapidly in recent years due to the increasing demand for decorative candles, scented candles, and handmade candles. Many entrepreneurs and hobbyists are starting candle-making businesses from home or small workshops.
If you are selling candles or candle making supplies, it is important to understand the correct GST rate and HSN code applicable to these products. Proper classification helps ensure accurate GST invoicing, correct GST return filing, and full compliance with Indian tax laws.
In this article, we explain the GST rate and HSN code applicable to candles and common candle making supplies in India.
HSN Code and GST Rate for Candles
Candles are classified under HSN Code 3406 under Chapter 34 of the GST tariff, which covers soaps, waxes, and similar products.
As per the GST rate revisions effective from 22 September 2025, the GST rate on candles has been reduced.
| Product Description | HSN Code | Old GST Rate | Current GST Rate |
| Candles, tapers and the like | 3406 | 12% | 5% |
Therefore, all types of candles such as scented candles, jar candles, decorative candles, pillar candles, tealight candles, and handmade candles generally attract 5% GST.
Handcrafted candles notified as handicraft goods may also be taxed at 2.5% CGST + 2.5% SGST (total 5%).
HSN Code and GST Rate for Candle Wicks
| Product Description | HSN Code | Current GST Rate |
| Cotton Wick | 5908 | 5% |
| Candle Wax (Soy, Gel etc) | 3404 | 18% |
| Candle Wax (Paraffin) | 2712 | 18% |
| Fragrance Oil | 3302 | 18% |
| Candle Dyes | 3204 | 18% |
| Candle Moulds (Silicon) | 3926 | 18% |
| Candle Containers (Glass) | 7013 | 18% |
Importance of Correct HSN Code and GST Rates
Using the correct HSN code for candle products is important for several reasons.
1. Accurate GST Filing
Incorrect HSN codes may create mismatches in GSTR‑1 and GSTR‑3B returns.
2. Avoid GST Notices
Wrong classification can result in tax demand notices from the GST department.
3. Smooth E‑commerce Selling
If you sell on platforms such as Amazon, Flipkart or your own website, correct HSN codes ensure proper tax calculation.
4. Input Tax Credit Management
Most candle inputs such as wax, fragrance oils, dyes and jars attract 18% GST while finished candles attract 5% GST. This may create an inverted duty structure where manufacturers accumulate excess input tax credit.
Where to Buy Candle Making Supplies
If you are planning to start a candle making business, sourcing high‑quality raw materials is essential.
You can purchase candle making supplies such as soy wax, candle wicks, fragrance oils, candle dyes, jars and molds from reliable suppliers like Kaari Candle Supplies.
Visit:
https://www.kaari.store
Kaari offers a wide range of candle making materials suitable for beginners as well as professional candle makers.
Conclusion
Understanding the GST rate and HSN code for candle making supplies is important for candle manufacturers, traders and hobbyists selling candles in India.
Frequently Asked Questions (FAQs)
Q1. What is the HSN code for scented candles?
Scented candles fall under HSN code 34060010 and attract 5% GST.
Q2. What is the GST rate on paraffin wax used for candles?
Paraffin wax is classified under HSN 27122000 and attracts 18% GST.
Q3. Are handmade/handcrafted candles taxed differently?
No. Handcrafted candles are also covered under HSN 340600 and attract the same 5% GST rate as factory-made candles.
Q4. What HSN code applies to candle fragrance oils?
Fragrance oils and candle scents fall under HSN 33021090 and are subject to 18% GST.
Q5. Can I claim ITC on candle making raw materials?
Yes. GST-registered businesses can claim ITC on all input goods such as wax, wicks, fragrance oils, packaging, etc., subject to conditions under the CGST Act.
