--- title: "New GST on Packaging Materials 2026: 18% Rate on Packaging" description: "New GST rate on packaging materials in 2026 is 18% on cartons, boxes and wrapping materials. Simplify GST billing with Busy and apply the right rate every time." canonical: "https://busy.in/gst-rates/packaging-materials/" author: "Hitesh Aggarwal" published: "2025-07-21T10:43:35.000Z" category: "GST Rates" --- - Packaging materials like cardboard, plastic, and metal are taxed under GST, with rates ranging from 5% to 18%. - Paper and cardboard boxes have a GST rate of 5%, while plastic, metal, and glass packaging are taxed at 18%. - Businesses can claim Input Tax Credit (ITC) on GST paid for packaging if it's used for business and proper invoices are filed. - Different industries, such as food, pharma, and e-commerce, face varying GST impacts but benefit from ITC to control costs. - Correct HSN codes must be used for GST billing, ensuring compliance and taking advantage of tax credits. # 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**](https://busy.in/gst/) ? In this blog, we break down the GST on packaging materials, applicable [**HSN codes**](https://busy.in/hsn/) , [**input tax credit**](https://busy.in/gst/input-tax-credit/) rules, and how the tax affects manufacturers and traders across sectors. ## 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 | Live Demo Available Today ## Raise Purchase Orders to Packaging Suppliers Automatically Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required \- ## 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**](https://busy.in/hsn/) for [**GST billing**](https://busy.in/accounting-software/invoicing-and-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**](https://busy.in/accounting-software/food-and-beverages/) , [**pharma**](https://busy.in/accounting-software/pharmacy/) , [**e-commerce**](https://busy.in/ecommerce-reconciliation/) , 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. ## About the author **Hitesh Aggarwal** 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**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/) - [New GST on Medical Equipment: Current Rates, Exemptions & Healthcare Impact](https://busy.in/gst-rates/medical-equipment/)