After the approval of the Finance Act 2025, we are publishing this blog on the updated third schedule of the Sales Tax Act 1990.
List of items of third schedule 2025-26
Below table also contains HS codes / PCT headings. Also note that list schedule is applicable for the tax year of 2026 (from July 2025 to June 2026).
| Serial No. | Item Name | HS Codes / PCT headings |
| 1 | Fruit juices and vegetable juices | 20.09 |
| 2 | Ice Cream | 2105.0000 |
| 3 | Aerated waters or beverages | 22.01 and 20.02 |
| 4 | Syrups and squashes | 2106.9020 |
| 5 | Cigarettes | 2402.2000 |
| 6 | Toilet soap | 3401.1100 and 3401.2000 |
| 7 | Detergents | 34.01 |
| 8 | Shampoo | 3305.1000 |
| 9 | Toothpaste | 3306.1010 |
| 10 | Shaving cream | 3307.1000 |
| 11 | Perfumery and cosmetics | 33.03 and 33.04 |
| 14 | Tea | 0902 series of HS codes |
| 15 | Powder drinks | 21.06 |
| 16 | Milky drinks | 2106.9090 |
| 17 | Toilet paper and tissue paper | 4818.1000 and 4818.2000 |
| 18 | Spices sold in retail packing bearing brand names and trade marks | 09.04, 09.06, 09.08 and 09.10 |
| 21 | Shoe polish and shoe cream | 3405.1010 |
| 33 | Cement sold in retail packing | 25.23 series, 32.14 series |
| 37 | Mineral/bottled water | 22.01 series, 22.02 series |
| 38 | Household electrical goods (e.g., air conditioners, TVs, fans, etc.) | Respective headings mentioned in customs tariff(s). |
| 39 | Household gas appliances (e.g., cooking range, geysers) | Respective headings mentioned in customs tariff(s). |
| 40 | Foam or spring mattresses and other foam products for household use | Respective headings mentioned in customs tariff(s). |
| 41 | Paints, varnishes, gums, resins, dyes, etc. in retail packing | Respective headings mentioned in customs tariff(s). |
| 42 | Lubricating oils and vehicular fluids in retail packing | Respective headings mentioned in customs tariff(s). |
| 43 | Storage batteries (excluding those sold to auto manufacturers) | Respective headings mentioned in customs tariff(s). |
| 44 | Tyres and tubes (excluding those sold to auto manufacturers) | Respective headings mentioned in customs tariff(s). |
| 45 | Motorcycles | Respective headings mentioned in customs tariff(s). |
| 46 | Auto rickshaws | Respective headings mentioned in customs tariff(s). |
| 47 | Biscuits in retail packing with brand name | Respective headings mentioned in customs tariff(s). |
| 48 | Tiles | Respective headings mentioned in customs tariff(s). |
| 49 | Auto-parts in retail packing (excluding those sold to auto manufacturers) | Respective headings mentioned in customs tariff(s). |
| 51 | DAP (Di-ammonium phosphate) | Respective headings mentioned in customs tariff(s). |
| 52 | Import of pet food including of dogs and cats sold in retail packing | 2309.1000 |
| 53 | Import of coffee sold in retail packing | 0901.1100, 0901.1200, 0901.2100, 0901.2200, 0901.9000, 2101.1120 |
| 54 | Import of chocolates sold in retail packing | 1704.9010, 1806.2090, 1806.3100, 1806.3200, 1806.9000 |
| 55 | Import of cereal bars sold in retail packing | 1904.1010, 1904.1090, 1904.2000, 1904.3000, 1904.9000. |
Finance Act 2025 added imported pert food, coffee, chocolates and cereal bars in category of third schedule items. There is no other change in this schedule for year 2025-26. For year 2024-25, you can read our respective blog.
Example of Third Schedule Good
For such items, manufacturers and importers print retail price on product labels. Sales tax is charged on the basis of retail prices. Let see it from below example
Retail price of a 3KG bag of dog food is Rs.2,205 which includes sales tax @18%. Importer will print retail price as follows:
2205 (Retail Price) = 1868.64 (Importer’s Retail Price) + 336.36 (Sales Tax)
References
- Finance Act 2025
- Customs Tariffs for HS codes
- Third Schedule of the Sales Tax Act 1990
