GST Rates on Handicraft Goods: 3%, 5% and 12% Changes in July 2018
A detailed reference to the concessional GST treatment of specified handicraft goods following the 28th GST Council meeting on 21 July 2018 and notifications issued on 26 July 2018.
Legal background and meaning of handicraft goods
Under section 9(1) of the Central Goods and Services Tax Act, 2017, CGST is levied on taxable intra-State supplies at notified rates, subject to statutory limits. Corresponding State GST generally applies to intra-State supplies. Section 5(1) of the Integrated Goods and Services Tax Act, 2017 governs IGST on inter-State supplies. The combined rates shown here refer to GST, rather than the CGST component alone.
For the concessional treatment described in the 2018 notification, handicraft goods are broadly goods predominantly made by hand, although tools or machinery may be used, which possess substantial ornamentation, inlay work or distinctive aesthetic, artistic, ethnic or cultural characteristics distinguishing them from comparable mechanically produced goods. The precise wording and applicable conditions of the relevant notification control eligibility.
The key historical instruments are Notification No. 21/2018-Central Tax (Rate), prescribing concessional CGST on specified handicraft items, and the corresponding Notification No. 22/2018-Integrated Tax (Rate). The wider July 2018 changes also involved Notification No. 18/2018-Central Tax (Rate), amending the principal goods rate notification.
Historical list of 39 handicraft goods and GST rates
The following table preserves all 39 goods entries and HSN classifications from the original article. Rates are shown as published in that historical list, without representing them as current rates.
| No. | HSN / tariff heading | Description of goods | GST rate in 2018 list |
|---|---|---|---|
| 1 | 3406 | Handcrafted candles | 12% |
| 2 | 4202 22, 4202 29, 4202 3110, 4202 3190, 4202 32, 4202 39 | Handbags including pouches and purses; jewellery box | 12% |
| 3 | 4416, 4421 99 90 | Carved wood products, art ware/decorative articles of wood (including inlay work, casks, barrel, vats) | 12% |
| 4 | 4414 00 00 | Wooden frames for painting, photographs, mirrors etc | 12% |
| 5 | 4420 | Wooden frames for painting, photographs, mirrors etc Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery, box, wood lathe and lacquer work [including lathe and lacquer work, ambadi sisal craft] | 12% |
| 6 | 4503 90 90 4504 90 | Art ware of cork [including articles of sholapith] | 12% |
| 7 | 4601 and 4602 | Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola items, Kouna/chumthang (water reeds) crafts, articles of Water hyacinth, korai mat] | 5% |
| 8 | 4823 | Articles made of paper mache | 5% |
| 9 | 5607, 5609 | Coir articles | 5% |
| 10 | 5609 00 20, 5609 00 90 | Toran, Doorway Decoration made from cotton yarn or woollen yarn and aabhala (mirror) with or without hanging flaps. | 5% |
| 11 | 57 | Handmade carpets and other handmade textile floor coverings (including namda/gabba) | 5% |
| 12 | 5804 30 00 | Handmade lace | 5% |
| 13 | 5805 | Hand-woven tapestries | 5% |
| 14 | 5808 10 | Hand-made braids and ornamental trimming in the piece | 5% |
| 15 | 5810 | Hand embroidered articles | 5% |
| 16 | 6117, 6214 | Handmade/hand embroidered shawls of sale value not exceeding Rs. 1000 per piece | 5% |
| 17 | 6117, 6214 | Handmade/hand embroidered shawls of sale value exceeding Rs. 1000 per piece | 12% |
| 18 | 6802 | Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand) | 12% |
| 19 | 6815 99 90 | Stone art ware, stone inlay work | 12% |
| 20 | 6912 00 10 6912 00 20 | Tableware and kitchenware of clay and terracotta, other clay articles | 12% |
| 21 | 6913 90 00 | Statuettes & other ornamental ceramic articles (incl blue potteries) | 12% |
| 22 | 7009 92 00 | Ornamental framed mirrors | 12% |
| 23 | 7018 10 | Bangles, beads and small ware | 5% |
| 24 | 7018 90 10 | Glass statues [other than those of crystal] | 12% |
| 25 | 7020 00 90 | Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ] | 12% |
| 26 | 7113 11 10 | Silver filigree work | 3% |
| 27 | 7117 | Handmade imitation jewellery (including natural seeds, beads jewelry, cardamom garland) | 3% |
| 28 | 7326 90 99 | Art ware of iron | 12% |
| 29 | 7419 99 | Art ware of brass, copper/ copper alloys, electro plated with nickel/silver | 12% |
| 30 | 7616 99 90 | Aluminium art ware | 12% |
| 31 | 8306 | Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali) | 12% |
| 32 | 9405 10 | Handcrafted lamps (including panchloga lamp) | 12% |
| 33 | 9401 50, 9403 80 | Furniture of bamboo, rattan and cane | 12% |
| 34 | 9503 | Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll) | 12% |
| 35 | 9504 | Ganjifa card | 12% |
| 36 | 9601 | Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material | 12% |
| 37 | 9602 | Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac) | 12% |
| 38 | 9701 | Hand paintings drawings and pastels (incl Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting, basoli etc) | 12% |
| 39 | 9703 | Original sculptures and statuary, in metal, stone or any other material | 12% |
How to determine the applicable GST rate today
First, identify the product's correct Customs Tariff heading and description. Next, check whether it satisfies any prescribed handicraft-specific definition and conditions. Finally, consult the latest amended CGST, SGST or IGST rate schedules, applicable exemptions and clarifications for the date of supply. A rate shown in an older notification may have been amended or superseded.
For legal reference, consult the Central Board of Indirect Taxes and Customs, the GST Council, and the GST portal. The GST Council website also provides meeting records and notification archives.
Frequently asked questions
Did all handicraft products attract 3%, 5% or 12% GST?
No. The concessional entries applied to specified goods and tariff headings subject to their legal descriptions and conditions. Classification as a handicraft in everyday language is not by itself sufficient.
Are these July 2018 rates still applicable?
Not necessarily. This is a historical schedule. Rates and classifications for current supplies must be verified against later amendments and the applicable notification in force on the transaction date.
Does the same percentage apply to inter-State supplies?
The combined intra-State CGST plus SGST rate and the corresponding IGST rate are ordinarily equivalent for a matching taxable supply, but the applicable IGST notification and conditions should be checked independently.