GST on Firearms in India: Why Pistols and Revolvers Attract 40% Tax

Firearm ownership in India is tightly regulated, and one major factor that adds to the cost of a weapon is GST (Goods and Services Tax). While some firearms like rifles and shotguns fall under the 18% GST category, handguns such as pistols and revolvers attract a much higher rate.

Starting from September 22, 2025, India has introduced a special 40% Goods and Services Tax (GST) applicable to "Sin Goods" and select luxury items. This streamlined tax structure merges the former 28% GST and multiple compensation cesses into one, elevated rate. 

GST Rates on Different Types of Firearms

Under the GST classification, firearms are divided by type and purpose. Below is the general rate structure applicable in India:

Firearm Type	GST Rate	HSN Code	Category
Sporting Rifles & Shotguns	18%	9303	Sporting / Civilian Use
Air Guns & Air Pistols	18%	9304	Non-Explosive / Training Use
Pistols & Revolvers	28% GST + 12% Compensation Cess = ~40%	9302	Civilian / Personal Defence
Ammunition & Cartridges	18%	9306	Ammunition & Components

This means that while sporting guns are taxed at a moderate rate, handguns are treated as high-value luxury items, attracting an effective tax of around 40%.

Why the 40% GST on Pistols and Revolvers?

Several economic and policy factors explain why pistols and revolvers face such steep taxation:

1. Classified as Luxury and Sin Goods: Civilian handguns are not considered essential items. The government categorizes them as luxury or “sin goods,” similar to items such as tobacco or luxury cars.

2. Regulatory Deterrent: India’s firearm laws (Arms Act, 1959) are strict. A higher GST rate acts as an additional deterrent, ensuring that only responsible and licensed individuals purchase handguns.

3. Revenue Considerations: Since civilian firearm ownership is limited, applying a higher GST rate ensures that the small market still contributes reasonably to government revenue.

4. Import and Market Parity: Imported firearms often attract customs duties of 80–100%. Keeping a higher GST on Indian-made pistols and revolvers maintains a fair price balance between imported and domestic weapons.

Why Rifles and Shotguns Are Taxed Lower

Sporting rifles and shotguns are primarily used for sports shooting, target practice, and hunting (where legal). These are categorized under HSN Code 9303, where the GST rate is set at 18%.

This lower rate encourages legitimate sports and recreational shooting activities — especially since India promotes shooting as an Olympic discipline.

Calls for Rationalization

The current effective GST of ~40% on pistols and revolvers is widely considered excessive by industry experts and firearm enthusiasts. Rationalizing the rate to 28–40% is justified for the following reasons:

1. Promotes Responsible Ownership: Reducing GST to 28% ensures that law-abiding citizens who obtain firearms legally for self-defense or sports are not unduly burdened. The tax remains high enough to deter casual or impulsive purchases.

2. Supports Domestic Manufacturing (“Make in India”): India’s firearm industry, including IOF and private manufacturers, is growing. A slightly lower GST would make Indian-made pistols and revolvers more competitive against imported firearms, which attract high customs duties, encouraging domestic production.

3. Encourages Shooting Sports: With rifles and shotguns taxed at 18% for sporting purposes, reducing handgun GST closer to 28% could promote sports shooting and target practice, making equipment upgrades and maintenance financially viable for enthusiasts.

4. Maintains Regulatory Control: Even at 28–40%, pistols and revolvers remain high-value items, keeping financial and regulatory barriers in place to prevent misuse while supporting legal ownership.

5. Reduces Black-Market Incentives: Excessively high taxation can push buyers toward illegal sources. Rationalizing GST strengthens the legal supply chain, ensuring firearms are accessible to responsible owners while discouraging illegal trade.

The 40% GST on pistols and revolvers is a deliberate policy decision aimed at regulating civilian firearm ownership and generating revenue for public welfare. While it serves to deter unauthorized ownership, it also raises concerns about the affordability and accessibility of legal firearms.

The firearms industry and enthusiasts continue to seek a balance between regulation and accessibility to ensure responsible ownership and use. With India’s domestic firearm manufacturing expanding, a more balanced tax policy could encourage legal ownership, promote shooting sports, and strengthen local industry — without compromising safety.