The packaging industry in India is composed of various materials, including plastic, paper, glass, jute, and metal. Each material has a unique HSN code and prescribed GST rate, ensuring transparency in tax administration. Here we are highlighting all the important HSN codes related to packaging and their GST rates together.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
| Other made-up textile articles; sets; worn clothing and worn textile articles; rags | Sacks and Bags, of a Kind Used for the Packing of Goods of Jute or of Other Textile Bast Fibres of Heading 5303: Jute Sacking Bags | 63051040 | 18% | – | 01/01/2020 | 5% |
| Sacks and Bags, of a Kind Used for the Packing of Goods of Jute or of Other Textile Bast Fibres of Heading 5303: Jute Corn (Grains) Sacks | 63051020 | 18% | – | 01/01/2020 | 5% | |
| Sacks and Bags of a Kind Used for the Packing of Goods of Cotton | 63052000 | 18% | – | 01/01/2020 | 5% | |
| Sacks and Bags, of a Kind Used for the Packing of Goods of Jute or of Other Textile Bast Fibres of Heading 5303: Paper Laminated Hessian Jute | 63051070 | 18% | – | 01/01/2020 | 5% | |
| Sacks and Bags, of a Kind Used for the Packing of Goods of Man-Made Textile Materials: Other | 63053900 | 18% | – | 01/01/2020 | 5-18% | |
| Sacks and Bags, of a Kind Used for the Packing of Goods of Man-Made Textile Materials: Other, of Polyethylene or Polypropylene Strip or The Like | 63053300 | 0% | – | 01/07/2017 | 5% | |
| Miscellaneous articles of base metal | Stoppers, Caps and Lids (Including Crown Corks, Screw Caps and Pouring Stoppers), Capsules for Bottles, Threaded Bungs, Bung Covers, Seals and Other Packing Accessories, of Base Metal Crown Corks | 83091000 | 18% | – | 01/07/2017 | – |
| Plastics and articles thereof | Articles for the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Other: Other | 39239090 | 18% | – | 01/01/2020 | – |
| Articles For the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Stoppers, Lids, Caps and Other Closures: Caps and Closures for Bottles Caps and Closures for Bottles | 39235010 | 18% | – | 01/01/2020 | – | |
| Articles For the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Stoppers, Lids, Caps and Other Closures: Other | 39235090 | 18% | – | 01/01/2020 | – | |
| Articles for the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Sacks and Bags (Including Cones) of Polymers of Ethylene | 39232100 | 18% | – | 01/01/2020 | – | |
| Articles For the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, Of Plastics – Boxes, Cases, Crates and Similar Articles: Insulated Ware | 39231030 | 18% | – | 01/01/2020 | – | |
| Articles For the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Other: Aseptic Bags | 39239020 | 18% | – | 01/01/2020 | – | |
| Articles For the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Carboys, Bottles, Flasks and Similar Articles: Insulated Ware | 39233010 | 18% | – | 01/01/2020 | – | |
| Articles For the Conveyance or Packing of Goods, of Plastics; Stoppers, Lids, Caps and Other Closures, of Plastics – Carboys, Bottles, Flasks and Similar Articles: Other | 39233090 | 18% | – | 01/01/2020 | – | |
| Paper or paperboard | Cartons, Boxes, Cases, Bags and Other Packing Containers, of Paper, Paperboard, Cellulose Wadding or Webs of Cellulose Fibres Box Files, Letter Trays, and Similar Articles, of Paper or Paperboard of a Kind Used in Offices, Shops or the Like – Other Sacks | 48194000 | 18% | – | 01/07/2017 | – |
| Glass and glassware | Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules and Other Containers, of Glass, of a Kind Used for the Conveyance or Packing of Goods; Preserving Jars of Glass; Stoppers, Lids and Other Closures, Of Glass –Ampoules | 70101000 | 18% | – | 01/07/2017 | – |
| Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules and Other Containers, of Glass, of a Kind Used for the Conveyance or Packing of Goods; Preserving Jars of Glass; Stoppers, Lids and Other Closures, of Glass – Stoppers, Lids, and Other Closures | 70102000 | 18% | – | 01/07/2017 | – | |
| Rubber and articles thereof | Plates, Sheets, Strip, Rods, and Profile Shapes, of Vulcanised Rubber Other than Hard Rubber – Tread Rubber and Tread Packing Strip for Resoling or Repairing, or Retreading Rubber Tyres | 40082940 | 18% | – | 01/07/2017 | – |
In a Nutshell
We hope you have a clear understanding of the HS Codes or HSN Codes for packing, including applicable GST rates. Knowing the HSN code and GST rate of packaging materials is very important for businesses and tax consultants. It simplifies tax compliance and helps in providing products to the customer at the right price. Following the right code maintains transparency and legal security in the business.
For any help in GST return filing or any GST-related matters, talk to our experts at Corpbiz.
Frequently Asked Questions
What is the HSN code for packaging services?
Packaging services are not a product but a service. Hence, there is no specific HSN code for it. Instead, it is determined by the SAC code. The most commonly used SAC code for packaging services is 998540. Using this code, traders can easily calculate the GST applicable to the service and also avoid any legal complications related to tax filing in the future.
What is the code for packing and forwarding services?
There is no separate HSN code for packing and forwarding services. Instead, the applicable code is SAC 996713. Using this code, traders can charge GST correctly on packing and forwarding costs. This makes the taxation process more transparent, and businesses can operate in compliance with the law.
Which code is used for packing costs?
Packing costs are considered a separate service, and a specific SAC code, 996713, is used for it. This helps traders calculate GST on service costs. Many companies mention packing charges separately in the invoice to simplify the tax filing process. Using the correct code ensures legal protection.
What is the HSN code for packaging material bags?
The HSN code for packaging bags varies according to the type of material. For example, 39232100 is applicable for plastic bags, and 48194000 is applicable for paper bags. Using these codes, traders can calculate GST correctly. Using the wrong code can cause problems in tax filing. Therefore, it is always correct to use the specific HSN code according to the material of the bag.
What is the HSN code of jute bags?
There are multiple HSN codes for jute bags. For example, 63051040 (Jute Sacking Bags) and 63051020 (Jute Corn Sacks). 18% GST is applicable in both cases. Jute bags are mainly used for agricultural products, grains, and industrial sectors. Their demand is increasing as they are environmentally friendly. Businesses can easily file taxes in accordance with the law by using the correct HSN code.
What is the HSN code of cotton bags?
The specific HSN code for cotton bags is 63052000 with 5% GST. Cotton bags are rapidly increasing in popularity in the market, as they are environmentally friendly and reusable. When traders sell or use cotton bags, it is important to mention this code in the invoice. This maintains tax compliance and reduces legal risks.
Which HSN code is used for plastic packaging materials?
The common HSN code for plastic packaging materials is 3923. Under this, there are various sub-codes, such as bags, bottles, containers, etc. Generally, 18% GST is levied on such materials. Plastic packaging is widely used in various industries and retail businesses. Using the correct HSN code makes the tax filing and invoicing process easier for traders.
What is the HSN code for paper packaging materials?
The HSN code for bags, boxes, cartons, etc., made of paper or paperboard is 48194000 with 5% GST. Nowadays, paper packaging is gaining popularity as an eco-friendly solution. Many retail businesses and e-commerce companies are using paper bags instead of plastic. Therefore, it is very important to mention the correct HSN code in business.
What is the HSN code for glass bottles and containers?
The 7010 series is used for glass bottles, jars, ampoules, flasks, etc. For example, the code for ampoules is 70101000, and the code for lids or closures is 70102000. 5% GST is applicable on these products. They are used for storing and transporting food products, medicines, cosmetics, etc. Traders need to use the correct code.
What is the HSN code for metal stoppers and lids?
The HSN code for metal stoppers, caps, corks, screw caps, or other closures for bottles is 83091000 with 18% GST. These are used in beverage bottles, medicinal products, and other consumer goods. Using the correct code in the business of metal packaging accessories makes invoicing easy, and there is no complication in filing tax returns.
What is the HSN code for rubber packaging materials?
The HSN code for packaging materials made of rubber is 40082940. It is mainly used for trading rubber and packing strips, which are used for tire repair or resolving, with 18% GST. Rubber packaging is an important part of the industry, and its use is most seen in the transportation sector.
How much GST is applicable on packing services?
Packing services are generally charged at 5% GST. If it is associated with the transportation and delivery services of goods, it is charged at the same rate. When businesses provide packing services to others, they have to use SAC code 996713 to charge GST correctly.
How much GST is charged on plastic bags?
The HSN code for plastic bags is 39232100, and 18% GST is applicable on it. Plastic bags are widely used in the retail market, wholesale business, and e-commerce. It is important for businessmen to know this code because using the wrong code can cause problems in tax filing.
What is the GST rate on paper bags or cartons?
The HSN code for bags or cartons made of paper is 48194000. It is generally subject to 18% GST. Paper packaging is popular these days as an eco-friendly alternative. Many businesses have started using paper bags instead of plastic, so it is very important to know the correct GST rate.
What is the GST for eco-friendly packaging materials?
Eco-friendly packaging, such as jute or cotton bags, is generally subject to 5% GST. Although they are reusable and good for the environment, the GST rate is kept the same as plastic or other materials. If traders use such bags, it is important to mention their correct HSN code.
Is packaging cost covered by GST?
Yes, the packaging cost is fully covered by GST. If a trader charges packaging separately from the customer, then the applicable GST will have to be charged on it as well. This cost is usually calculated using SAC code 996713. This simplifies the tax filing process and reduces legal risks.
Can packing charges be shown separately in the invoice?
Yes, packing charges can be shown separately on the invoice. However, GST will be applicable on it, and the calculation has to be done correctly. Usually, traders include the charge using the SAC code 996713. This maintains tax compliance and ensures transparency for the buyer.
What should traders keep in mind while purchasing packing materials?
While purchasing packing materials, traders should ensure that the correct HSN code is mentioned. Using the wrong code can lead to complications while filing tax returns. Also, there are different GST rates for plastic, paper, glass, and metal materials, so it is essential to mention them correctly in the invoice.
Is GST exemption available on packaging services?
Generally, there is no GST exemption on packaging services. However, if the packing cost is linked to the price of a main product and is not charged separately, then the GST rate is applicable along with the rate of the main product. Traders should consult a tax expert for this.
