GST on Toys and Sporting Goods: Rates & HSN Codes

Introduction

The GST treatment of toys and sports products changed significantly from 22 September 2025. Specified non-electronic toys, physical board games and regular sporting goods now generally attract 5% GST. However, electronic toys, video-game equipment and products used for general physical exercise generally remain taxable at 18%.

 

As a result, GST on Toys and Sporting goods cannot be determined only from the product’s commercial name. The correct rate depends on the HSN heading, product function and exclusions written into the applicable rate entry.

 

A cricket bat, electronic learning toy and treadmill may be sold by the same business, but they do not necessarily carry the same GST rate. This article explains GST on Toys and Sporting goods with current rates, classification points and practical compliance requirements.

 

 

 

Latest Legal Update on GST on Toys and Sporting Goods

The 56th GST Council recommended reducing the GST rate on specified toys, board games and sporting products from 12% to 5%. The revised rates were implemented from 22 September 2025 through Notification No. 9/2025-Central Tax (Rate), dated 17 September 2025.

 

For an intra-State supply, the 5% total rate consists of 2.5% CGST and 2.5% SGST. An interstate supply generally attracts 5% IGST.

 

The Central Government subsequently issued Notification No. 01/2026-Central Tax (Rate) on 30 April 2026. However, that amendment changed specified tariff entries relating to heading 2202 and did not revise the principal toy and sporting-goods entries. Therefore, the September 2025 framework remains relevant for GST on Toys and Sporting goods as of July 2026.

 

Current GST Rates and HSN Codes

The following table explains the main rates relevant to GST on Toys and Sporting goods:

 

Product category	HSN heading	GST rate
Gloves specially designed for sports	4203	5%
Non-electronic toys and specified accessories	9503	5%
Electronic toys	9503	18%
Playing cards, chess, carrom and ludo	9504	5%
Video-game consoles and machines	9504	18%
Sports goods other than general physical-exercise equipment	9506	5%
General physical-exercise and gym equipment	9506	18%
Specified fishing rods, tackle and nets	9507	5%

 

The 5% category covers specified non-electronic toys, physical board games, ordinary sports goods, sports gloves and listed fishing equipment. Electronic toys, video-game machines and general physical-exercise equipment fall under the 18% category.

 

This table gives the broad position. GST on Toys and Sporting goods should still be checked against the exact description, features and intended use of each product.

 

A single HSN heading can contain both concessional and standard-rate products. Therefore, GST on Toys and Sporting goods must be matched with the relevant wording of the rate entry.

 

Toy and sporting-goods sellers who cross the applicable turnover limit or fall under compulsory registration provisions should obtain GST registration online before collecting GST from customers.

 

GST on Non-Electronic Toys

Non-electronic toys under heading 9503 generally qualify for 5% GST. This category can include:

• Dolls
• Tricycles
• Toy scooters
• Pedal cars
• Construction toys
• Manual puzzles
• Pull-along toys
• Manually operated play articles

The important condition is that the product should not be classified as an electronic toy.

 

For manufacturers and retailers, this distinction is one of the most important aspects of GST on Toys and Sporting goods. A toy operated entirely by hand may qualify for 5%, while a similar product dependent on electronic components may attract 18%.

 

A battery used only for a minor light or sound function may create a classification question. Businesses should check whether the electronic feature gives the toy its main character or is only incidental.

 

Product photographs, operating instructions, technical specifications and packaging details should be retained to support the selected treatment of GST on Toys and Sporting goods.

 

GST on Toy Parts and Accessories

Toy parts and accessories also require separate review. A component specifically covered with an eligible non-electronic toy may follow the 5% rate.
However, an independent electrical, plastic or mechanical component may fall under another HSN heading. Businesses should not automatically apply the GST rate of the complete toy to every replacement part.

 

GST on Electronic Toys

Electronic toys generally attract 18% GST. These may include:

• Remote-controlled cars
• Programmable toy robots
• Electronic learning toys
• Battery-operated musical toys
• Motorised toy vehicles
• Toys controlled through mobile applications
• Electronic educational devices

Businesses should avoid classifying every child-focused product as a 5% toy. The difference between the 5% and 18% rates makes electronic functionality a major classification issue under GST on Toys and Sporting goods.

 

Product descriptions should clearly state whether the item operates manually, mechanically, electrically or electronically. Generic descriptions such as “children’s toy” may not be sufficient during GST scrutiny. Businesses importing toys or sporting equipment must obtain IEC registration and correctly classify the goods for customs and IGST purposes.

GST on Board Games

Playing cards, chess boards, carrom boards, ludo and similar physical board games under heading 9504 generally attract 5% GST.

 

The concessional entry applies to physical board games and specifically separates them from video-game consoles and machines.

 

Products that may fall under the 5% entry include:

• Chess sets
• Carrom boards
• Ludo sets
• Playing cards
• Snakes and ladders

Other similar non-electronic board games

 

GST on Video-Game Consoles and Machines

Video-game consoles, arcade machines and similar electronic gaming equipment generally attract 18% GST.

 

Therefore, a seller offering both chess sets and gaming consoles should create separate HSN and GST-rate mappings. Using one broad “games” category in billing software may result in an incorrect application of GST on Toys and Sporting goods.

 

Electronic games supplied as software, online access or downloadable content may also require a separate review because the supply may not be treated in the same manner as a physical gaming machine.

 

GST on Sporting Goods

Regular sports goods under heading 9506 generally attract 5%, provided they are not covered by the exclusion for general physical exercise.

 

Products commonly considered under this category may include:

• Cricket bats
• Cricket stumps
• Cricket balls
• Footballs
• Volleyballs
• Badminton rackets
• Tennis rackets
• Hockey equipment
• Table-tennis articles
• Other equipment used for recognised sports

The exact classification must still be checked. A product’s description as “sports equipment” in a catalogue does not automatically confirm its HSN code.

 

Sportswear, sports shoes, smart watches and electronic fitness trackers may fall under textile, footwear or electronics chapters. They should not automatically be classified under heading 9506 while determining GST on Toys and Sporting goods.

 

GST on Gym and Fitness Equipment

Equipment used for general physical exercise generally attracts 18% GST.

 

This category may include:

• Treadmills
• Exercise cycles
• Weight-training machines
• Multi-gym equipment
• General workout equipment
• Home exercise machines

The distinction is based mainly on the product’s intended use. Equipment designed for a recognised sport may qualify for the 5% sports-goods entry, while equipment mainly intended for general fitness may remain taxable at 18%.

 

Sellers should not rely only on marketing labels such as “sports fitness,” “home sports” or “athletic equipment.” Correct use-based classification is essential for GST on Toys and Sporting goods.

 

GST on Sports Gloves

Gloves specially designed for sporting use under heading 4203 generally attract 5% GST.

 

These may include gloves specifically designed for use in particular sports. However, fashion gloves, industrial gloves, riding gloves and ordinary protective gloves may fall under separate tariff entries.

 

The design, material and intended use should be clearly documented before applying the concessional rate.

 

GST on Fishing Equipment

Specified fishing rods, line-fishing tackle, fish-landing nets and similar products under heading 9507 generally attract 5%.

 

The concessional rate may cover:

• Fishing rods
• Fish hooks
• Line-fishing tackle
• Landing nets
• Butterfly nets
• Similar specified equipment

The benefit applies only where the product matches the notified description. Other marine, boating or outdoor products should be classified separately before applying GST on Toys and Sporting goods.

 

GST on Handmade and Traditional Toys

Traditional and handmade toys may qualify for 5% GST where they fall within the relevant toy or handicraft entry.

 

Examples may include:

• Wooden dolls
• Handmade toy animals
• Traditional wooden toys
• Textile dolls
• Metal decorative toys
• Channapatna-style toys
• Sawantwadi wooden toys

However, the product must satisfy the relevant tariff and handicraft conditions. Merely adding handmade decoration to an electronic or mass-produced product does not automatically make it eligible for a concessional rate.

 

Businesses claiming a handicraft classification should maintain information about the production process, material, artisan work and product design.

 

How to Decide Whether 5% or 18% GST Applies

Businesses can use the following product-level test while determining GST on Toys and Sporting goods:

1. Identify the Main Product: Determine whether the article is mainly a toy, board game, sporting article, electronic device or fitness machine.
2. Check Electronic Features: Confirm whether the product functions manually or depends on batteries, motors, sensors, software or electronic controls.
3. Review the Intended Use: Determine whether the product is used for a recognised sport or for general physical exercise.
4. Verify the HSN Code: Check the applicable four-digit heading and detailed tariff description.
5. Read the Exclusions: product may fall under the same broad heading but be specifically excluded from the concessional rate.
6. Retain Supporting Records: Maintain technical specifications, catalogues, photographs, packaging and classification workings.

 

This process is particularly important for hybrid products. A manually operated toy containing a small sound module may require closer examination.

 

Similarly, a training device used by athletes may still be classified as general exercise equipment. Borderline products create the highest compliance risk in GST on Toys and Sporting goods.

 

Impact of the Rate Change on Old Stock

The applicable outward tax rate depends on the time-of-supply provisions and the date on which the revised rate became effective.

 

Stock purchased before 22 September 2025 does not automatically continue at the old outward rate when supplied after the effective date.

 

Where the supply, invoice and payment dates fall on different sides of the rate change, Section 14 of the CGST Act should be reviewed. The GST Council’s implementation FAQ also clarifies that the revised rates apply based on the relevant supply and time-of-supply rules.

 

Billing software, product labels and price lists should be updated to prevent an old rate from being applied to a new supply of GST on Toys and Sporting goods.

 

Input Tax Credit After the Rate Reduction

Eligible input tax credit already available in the electronic credit ledger does not lapse merely because the outward GST rate was reduced.

 

The GST Council FAQ confirms that credit validly available in the electronic credit ledger may continue to be used for discharging output tax liability in accordance with the CGST Act and rules.

 

However, the lower outward rate may lead to credit accumulation for some manufacturers or traders. Businesses should regularly reconcile:

• Purchase invoices
• GSTR-2B
• Electronic credit ledger
• Inventory records
• Output GST liability
• Debit and credit notes

Accurate product mapping helps prevent ITC disputes connected with GST on Toys and Sporting goods.

 

GST on Combo Packs and Toy Kits

Combo packs can create classification problems under GST on Toys and Sporting goods.

 

A kit may contain:

• Non-electronic toys
• Electronic accessories
• Stationery products
• Learning material
• Batteries
• Books
• Sporting accessories

The applicable GST rate may depend on whether the products form a composite supply, mixed supply or separately priced individual supplies.

 

Businesses should document the principal supply, packaging method and value of each item. Applying 5% to an entire kit only because it contains one non-electronic toy may be incorrect.

 

GST Compliance for Online Sellers

Online sellers handling GST on Toys and Sporting goods should match marketplace listings with the HSN codes and rates stored in their accounting software.

 

Marketplace categories such as “toys,” “sports,” “games” and “fitness” are commercial categories. They do not replace legal HSN classification.

 

Each SKU should contain:

• Correct product name
• Detailed description
• GST HSN code finder
• GST rate
• Electronic or non-electronic status
• Selling price
• Place-of-supply mapping

Returns, discounts, replacements and credit notes should follow the original tax treatment. This reduces mismatches between marketplace reports, tax invoices and GST returns.

 

Get Expert Help From Ebizfiling

Businesses dealing in toys, games, sports goods and fitness equipment often face difficulty in selecting the correct HSN code and GST rate for each product. Ebizfiling can help review product descriptions, electronic features, intended use and applicable tariff entries to identify whether a product falls under the 5% or 18% GST category.

 

The team can also support GST registration, return filing, invoice correction and notice responses where an incorrect rate or HSN code has already been reported. This helps businesses maintain consistent tax treatment across invoices, accounting records, marketplace listings and GST returns while reducing the risk of short payment, interest and future classification disputes.

 

Need help with HSN classification or GST filing for toys and sporting goods? Connect with Ebizfiling today.

 

Conclusion

GST on Toys and Sporting goods is generally 5% for specified non-electronic toys, physical board games, regular sports goods, sports gloves and listed fishing equipment. Electronic toys, video-game equipment and products used for general physical exercise generally attract 18%.

 

However, businesses should not select the GST rate only from a broad retail description. The exact HSN entry, electronic features, intended use and notified exclusions must be checked. A product-wise classification process, updated billing system and proper technical records can help businesses apply GST on Toys and Sporting goods correctly and reduce the risk of tax disputes.

 

Frequently Asked Questions