Article · 10 min read

Agarbatti making business in India 2026: licences and GST

CalcGuru · calcguru.in Free Beginner India

A July 2026 guide to agarbatti manufacturing: no product licence, White or Green pollution category, 5% GST on agarbatti against 18% on fragrance inputs, the 25% duty on raw bamboo sticks since 2019, and PMEGP support.

  • Home-scale agarbatti units run on Udyam and a trade licence.
  • File inverted-duty refunds, since inputs carry more GST than the product.
  • Secure raw stick supply first; it is the real constraint.

The question it answers

  1. How do I start an agarbatti (incense stick) business in India?

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