Every monsoon, crores of Indian families light a mosquito coil, plug in a vaporiser, or reach for a spray or ointment. These products protect children from dengue, malaria and chikungunya, diseases that still kill thousands of Indians every year. Yet under India's GST framework, many of these are still taxed at 18 per cent.
A new study by EY India and the Home Insect Control Association (HICA) revealed that this tax structure is not only economically misguided but also a public health failure.
The report, titled GST Rationalisation for Household Insecticides: A Public Health Imperative, urges the GST Council to slash the rate on household insecticides from 18 per cent to 5 per cent, and to create a specific, unambiguous HSN classification for these products under tariff entry 3808 91 91.
According to the EY-HICA study, the Indian household insecticide market, covering coils, mats, vaporisers, aerosols, sprays and topical repellents, grew to ₹8,138 crore in 2025 from ₹7,147 crore in 2023. The market achieved near-saturation urban penetration at 92–99 per cent, but rural penetration lags at 64–73 per cent. The study also flagged that the average monthly spending on mosquito-control products was just ₹8.03 in rural households, compared to Rs. 62.17 in urban areas. This meant that price sensitivity shaped access to mosquito protection in the country.
Complaint vs non-complaint products
The study also flagged that compliant, registered household insecticides attract 18 per cent GST while informal, unregulated alternatives, such as incense sticks laced with unapproved pesticides, were misclassified under ordinary agarbatti HSN codes, attracting just 5 per cent GST.
The 56th GST Council Meeting held on September 22, 2025, rationalised rates on a wide basket of essential FMCG and healthcare products, such as soaps, toothbrushes, diagnostic kits, thermometers and more, to 5 per cent, but household insecticides were left out.
"The analysis highlights a clear disconnect between the essential role these products play and their current GST classification. The existing tax structure may not only undermine affordability for vulnerable households but could also introduce market distortions that can weaken consumer safety and hinder the growth and formalisation of the sector," said Bipin Sapra, Partner, Indirect Tax at EY India.
