What is the GST on packaging materials in India?

It ranges between 5% and 18% , depending on the type of material used.

Can manufacturers claim ITC on packaging materials?

Yes, businesses can claim Input Tax Credit on packaging materials used for business.

What is the HSN code for plastic packaging?

Plastic packaging materials fall under HSN code 3923 with 18% GST .

Are paper boxes taxed lower than plastic wraps?

Yes, paper boxes are taxed at 12% , while plastic wraps usually carry 18% GST .

Does GST apply to reusable packaging too?

Yes, GST applies to all forms of packaging materials, whether disposable or reusable .

New GST on Packaging Materials: Tax Implication Across Industries

Packaging plays a vital role in almost every industry, from FMCG and pharmaceuticals to electronics and exports. Whether it’s cardboard boxes, plastic wraps, bottles, or tin containers, packaging materials are a key part of production and supply chains. But how are these materials taxed under GST ? In this blog, we break down the GST on packaging materials, applicable HSN codes , input tax credit rules, and how the tax affects manufacturers and traders across sectors.

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GST Rates

New GST Rate on Common Packaging Materials

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common Packaging Materials (no compensation cess).

Type of Packaging Material	GST Rate	Examples
Paper & Cardboard Boxes	5%	Corrugated boxes, folding cartons
Plastic Packaging (wraps, bags)	18%	Shrink wrap, plastic pouches
Metal Packaging (cans, tins)	18%	Tin containers, aluminum foil
Glass Bottles & Jars	18%	Used in food & pharma
Wooden Crates & Boxes	5%	Used for heavy machinery & transport
Thermocol Packaging	18%	Electronics and fragile items
Textile-Based Sacks or Bags	5%	Jute bags, woven sacks

Are Packaging Materials Taxable Under GST?

Yes, all kinds of packaging materials are taxable under GST. These materials are considered essential inputs or capital goods depending on their use. The GST rate varies depending on the type of material, such as paper, plastic, glass, or metal.

Old GST Rate on Common Packaging Materials

(Old GST Rates – Applicable Until 21st September)

Type of Packaging Material	GST Rate	Examples
Paper & Cardboard Boxes	12%	Corrugated boxes, folding cartons
Plastic Packaging (wraps, bags)	18%	Shrink wrap, plastic pouches
Metal Packaging (cans, tins)	18%	Tin containers, aluminum foil
Glass Bottles & Jars	18%	Used in food & pharma
Wooden Crates & Boxes	12%	Used for heavy machinery & transport
Thermocol Packaging	18%	Electronics and fragile items
Textile-Based Sacks or Bags	5% – 12%	Jute bags, woven sacks

HSN Codes for Packaging Materials

Material Type	HSN Code	Old GST Rate
Paper/Paperboard Boxes	4819	12%
Plastic Films/Bags	3923	18%
Metal Containers (Tins)	7310 / 7612	18%
Glass Containers	7010	18%
Jute or Woven Sacks	6305	5% – 12%
Wooden Boxes/Crates	4415	12%

Always apply the correct HSN code for GST billing and compliance.

Input Tax Credit (ITC) on Packaging Materials

Businesses can claim Input Tax Credit on the GST paid for packaging materials, provided:

The packaging is used for business purposes
A valid GST invoice is available
The supplier has filed appropriate GST returns

This is especially relevant in industries like food processing , pharma , e-commerce , and exports .

Industry-Wise GST Impact

1. Food & Beverage Industry

Uses plastic containers, glass jars, and foil wraps
Most packaging taxed at 18%
Eligible for ITC, reducing effective cost

2. Pharmaceutical Industry

High reliance on glass and plastic packaging
Uniform 18% GST rate applies
Packaging is essential for safety and labeling

3. E-commerce & Retail

Use of corrugated boxes, plastic pouches
GST on packaging materials affects pricing models
ITC benefits ensure better margin control

Conclusion

The GST on packaging materials depends on the type and composition of the material used, with rates ranging from 5% to 18%. Businesses should be aware of correct HSN codes and tax slabs to ensure compliance and take advantage of ITC. From food delivery to electronics shipping, packaging plays a critical role, and understanding its tax implications can help control costs and boost profitability across industries.

Hitesh Aggarwal

Chartered Accountant

MRN No.: 529770

City: Delhi

As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.

Frequently Asked Questions

What is the GST on packaging materials in India?

It ranges between 5% and 18%, depending on the type of material used.
Can manufacturers claim ITC on packaging materials?

Yes, businesses can claim Input Tax Credit on packaging materials used for business.
What is the HSN code for plastic packaging?

Plastic packaging materials fall under HSN code 3923 with 18% GST.
Are paper boxes taxed lower than plastic wraps?

Yes, paper boxes are taxed at 12%, while plastic wraps usually carry 18% GST.
Does GST apply to reusable packaging too?

Yes, GST applies to all forms of packaging materials, whether disposable or reusable.

View all FAQs