What is the classification of 'Rakhi'

[R N Desai]

Dear All,

I shall be thankful if someone could tell me the Chapter Heading and rate of GST applicable on “Rakhi” used in the “Rakshabandhan” festival.

[SHIVKUMAR SHARMA]

Rakhi is cover under HSN 96040000 & Rate of GST is 18%.

[KASTURI SETHI]

In English Rakhi is called "Cotton Bracelet". Chapter 52.

[Kishan Barai]

When Sir Purchase it they need to pay 18% but they they supply free to brother they will attract 0% GST for brothers . 

Rather then purchasing any gifts in return of Rakhi it is advisable for all brothers to pay CASH Cover to avoid GST 

AI Summary

GST classification of rakhi: retail purchases attract the standard rate, while free gifts to recipients may be zero-rated. Forum responses classified rakhi under an HSN classification corresponding to small manufactured articles with the standard GST rate, while an alternative view placed it as a cotton bracelet under the textile chapter. Contributors noted that purchased rakhis are taxable as supplies at the standard GST rate, whereas supplying them free to recipients was described as attracting zero-rated treatment; one reply suggested giving cash instead of goods to avoid goods taxation.