New GST on Packaging Materials: Tax Implication Across Industries
- Packaging materials attract GST based on their material and HSN classification, with common rates ranging from 5% to 18%.
- Corrugated and non-corrugated paper cartons, boxes and cases under HSN 4819 10 / 4819 20 attract 5% GST.
- Plastic, glass and common metal packaging materials generally attract 18% GST, subject to classification.
- GST-registered businesses may claim eligible ITC on packaging used for taxable business supplies, subject to GST conditions.
- The correct packing material HSN code should be used on invoices because the GST rate can vary by material and product type.
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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New GST Rate on Common Packaging Materials
GST rates on packaging materials depend on their material and HSN classification. Certain paper and wooden packaging products received GST reductions from 22 September 2025, while several plastic, metal and glass packaging products continue at 18%.
| Type of Packaging Material | Typical HSN Code | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Examples |
|---|---|---|---|---|
| Corrugated/non-corrugated paper cartons, boxes and cases | 4819 10 / 4819 20 | 5% | 12% | Corrugated boxes, folding cartons |
| Plastic packaging articles | 3923 | 18% | 18% | Plastic pouches, bottles, packing containers |
| Iron/steel packaging containers | 7310 | 18% | 18% | Cans, tins, drums |
| Aluminium packaging containers | 7612 | 18% | 18% | Aluminium cans and boxes |
| Glass bottles and jars | 7010 | 18% | 18% | Food and pharma bottles/jars |
| Wooden packing cases, boxes and crates | 4415 | 5% | 12% | Wooden crates, pallets, packing boxes |
| Thermocol/EPS packaging articles | 3923 / 3926, as applicable | Generally 18% | Generally 18% | Protective packaging for electronics |
| Woven/non-woven PE/PP packing bags and sacks | 3923 / 6305 | 18% | 18% | Bulk packing sacks |
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
Type of Packaging Material
Typical HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Examples
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.
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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, paper cartons and foil packaging
- GST generally ranges from 5% to 18%, depending on the packaging material and HSN classification
- Eligible businesses may claim ITC, subject to GST conditions
2. Pharmaceutical Industry
- Uses glass, plastic, paper and other specialised packaging
- GST depends on the material and HSN classification; common rates are 5% or 18%
- Eligible businesses may claim ITC subject to GST conditions
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.
