Selling candles online in India: licences, GST rate and label rules
Candles need no product-specific licence; you need GST registration once you ship to another state. They fall under HSN 3406 at 5% GST (Schedule I, S.No. 253 of Notification 9/2025-CT(R)), and a pre-packed candle must carry the Legal Metrology declarations, including net quantity and MRP.
In this post · 9 sections
Short answer: Candles need no product-specific licence; you need GST registration once you ship to another state. They fall under HSN 3406 at 5% GST (Schedule I, S.No. 253 of Notification 9/2025-CT(R)), and a pre-packed candle must carry the Legal Metrology declarations, including net quantity and MRP.
Rules and rates checked on 24 October 2026. Sources are listed at the end of this page.
Licences and registrations
| What | Do you need it? | Cost | Where |
|---|---|---|---|
| GST registration | Yes if you ship to any other state; otherwise only above ₹40 lakh turnover (₹20 lakh or ₹10 lakh in some states) | No fee is stated in the notifications read | GST common portal (gst.gov.in) |
| Candle-specific licence or BIS certification | No | None | Not applicable |
GST registration. Section 24(i) of the CGST Act makes registration compulsory for anyone making inter-State taxable supplies, whatever the turnover. Notification 10/2019-CT exempts goods-only sellers up to ₹40 lakh, but that exemption excludes section 24 cases and intra-state sellers in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand.
Candle-specific licence or BIS certification. None of the GST, Legal Metrology or e-commerce rules read for this page set a licence for making or selling candles.
GST rate and HSN code
HSN 3406: Candles, tapers and the like. GST rate: 5% (Notification 9/2025-CT(R), Schedule I, S.No. 253). Before 22 September 2025 it was 12%.
Schedule I, S.No. 253 of Notification 9/2025-CT(R) lists "3406 Candles, tapers and the like". That is 2.5% CGST plus 2.5% SGST on an order inside your state, or 5% IGST on an order to another state. The rate applies from 22 September 2025. The PIB note on the 56th GST Council lists candles among "common man items" moved from 12% to 5%.
Handmade candles have their own entry, "Handcrafted candles" at 2.5% CGST, in Notification 21/2018-CT(R) as substituted by Notification 13/2025-CT(R). The total is still 5%, so handmade and machine-made candles now pay the same rate.
Your inputs sit in different slabs. Paraffin wax (2712) is in Schedule II, S.No. 31, at 18%. Vegetable waxes and beeswax (1521) are in Schedule I, S.No. 98, at 5%. Textile candle wicks (5908) are in Schedule I, S.No. 383, at 5%.
Worked example: one sale at ₹499
| Price the buyer pays (GST included) | ₹499 |
| Taxable value | ₹475.24 |
| Buyer in your state: CGST + SGST | ₹11.88 + ₹11.88 |
| Buyer in another state: IGST | ₹23.76 |
What the label and product page must show
- Pack: the common or generic name, for example "soy wax jar candle" (rule 6(1)(b)).
- Pack: net quantity in a standard unit such as grams (rule 6(1)(c)).
- Pack: month and year of manufacture (rule 6(1)(d)).
- A package with net content of 10 g or less is exempt from these declarations (rule 26(a)). The test is per package, so a box of tealights weighing more than 10 g in total needs the declarations.
- Pack: name and address of the manufacturer, and of the packer or importer where different (Legal Metrology (Packaged Commodities) Rules 2011, rule 6(1)(a)).
- Pack: MRP in rupees, stated as inclusive of all taxes (rule 6(1)(e)).
- Product page: show every rule 6(1) declaration except the month and year of manufacture, which rule 6(10) lets online listings leave out.
- Product page: return, refund, exchange, delivery and payment terms, and the total price as one figure (Consumer Protection (E-Commerce) Rules 2020, rule 7(1)).
- Website: your legal name, address, customer care contact and a grievance officer who acknowledges complaints within 48 hours and resolves them within one month (E-Commerce Rules, rules 4(2), 4(4), 4(5)).
Packing, shipping and listing
A ₹499 candle at 5% GST has a taxable value of ₹475.24 and tax of ₹23.76. Charge CGST plus SGST inside your state and IGST outside it.
If you pour paraffin candles, you pay 18% GST on the wax and collect 5% on the candle. Your input tax credit can build up faster than your output tax. Soy, other vegetable waxes and beeswax are taxed at 5%, the same as the candle.
Shiprocket's list of dangerous goods does not name candles. It does bar flammable liquids, solids and powders that are classified as dangerous goods for air transport. Fragrance oils and reed diffusers sold alongside candles may be caught by that clause. Check with your courier before you list them.
Mistakes to avoid
- Charging 12% on old stock. The 5% rate applies to every invoice from 22 September 2025, whenever the candles were made.
- Billing incense cones or other burnable fragrance products as candles. Agarbatti and dhoop are at 5% (Schedule I, S.No. 250), but other "odoriferous preparations which operate by burning" are at 18% (Schedule II, S.No. 65).
- Leaving the MRP or net weight off the jar because the product page already shows it. The pack needs the rule 6(1) declarations too.
- Assuming the 10 g exemption covers tealights. It applies to the package, not to each candle.
- Shipping across states without GST registration. Section 24(i) makes registration compulsory for inter-State supply.
On your own Selzix store
You set the HSN code and GST rate on each product, and every order gets a GST invoice with the CGST and SGST or IGST split worked out from the buyer's state. Not sure you need GST at all? Read GST for online sellers in India.
Questions sellers ask
What is the GST rate on candles in India?
5%, from 22 September 2025. Candles are HSN 3406, listed at Schedule I, S.No. 253 of Notification 9/2025-CT(R). The rate was 12% before. Handcrafted candles also end up at 5%.
Do I need a licence to sell homemade candles online?
No candle-specific licence applies. You need GST registration if you ship to other states, because section 24(i) of the CGST Act requires it for inter-State supply. Pre-packed candles must also carry the Legal Metrology declarations such as net quantity and MRP.
What is the HSN code for candles?
3406, "Candles, tapers and the like". Candle wicks are 5908 and paraffin wax is 2712. Wicks are taxed at 5% and paraffin wax at 18%.
Sources
- Notification No. 9/2025-Central Tax (Rate), 17 September 2025 (Gazette copy), Ministry of Finance, Department of Revenue (copy hosted by EPCES) (read 24 October 2026)
- Notification No. 9/2025-Central Tax (Rate), CBIC Tax Information Portal (read 24 October 2026)
- Recommendations of the 56th Meeting of the GST Council (press release with Annexures I and II), Press Information Bureau, Ministry of Finance (copy on GST Council website) (read 24 October 2026)
- Notification No. 13/2025-Central Tax (Rate), amending Notification 21/2018 (handicrafts), CAclubindia (reproduction of CBIC notification) (read 24 October 2026)
- Notification No. 21/2018-Central Tax (Rate): supplies of specified handicraft goods, GSTGyaan (consolidated text) (read 24 October 2026)
- Legal Metrology (Packaged Commodities) Rules, 2011 (rules 2, 3, 6, 26), LegitQuest (bare act text) (read 24 October 2026)
- Consumer Protection (E-Commerce) Rules, 2020, LegitQuest (bare act text) (read 24 October 2026)
- Notification No. 10/2019-Central Tax: registration exemption up to Rs 40 lakh for suppliers of goods, GSTZen (notification text) (read 24 October 2026)
- Section 24: compulsory registration under GST, TaxGuru (read 24 October 2026)
- Which products are prohibited/dangerous to ship via Shiprocket, Shiprocket Help Centre (read 24 October 2026)
General information, not tax or legal advice. Rules change; check the source before you file or apply. Cover photo: Vlada Karpovich on Pexels.