New Packing Material GST Rate: Paper, Plastic, and Others
From food delivery boxes to bubble wrap and wooden crates, packing materials are essential across industries. Whether you’re a manufacturer, e-commerce seller, or wholesaler, knowing the GST rates on packaging items helps manage costs and stay compliant. This blog covers the packing material GST rate, including tax slabs for paper, plastic, and wooden materials.
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Are Packing Materials Taxable Under GST?
Yes. Almost all types of packing materials are considered tangible goods under GST and are taxable based on material type. This includes:
- Carton boxes
- Plastic bags and films
- Wooden boxes or crates
- Glass containers
- Metal drums and cans
The gst on packing material varies from 5% to 18%, depending on usage, material, and classification.
Also Know About – Packing Material HSN Code
New GST Rate on Paper-Based Packaging in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for paper-based packaging (no compensation cess).
New GST on Paper-Based Packaging
| Paper Material | HSN Code | New GST Rate |
|---|---|---|
| Corrugated boxes/cardboard cartons | 4819 | 5% |
| Paper cones, tubes, spools | 4819 | 5% |
| Paper bags (branded/unbranded) | 4819 | 5% |
New GST on Plastic Packing Material
| Plastic Material | HSN Code | New GST Rate |
|---|---|---|
| Plastic bags, pouches, or films | 3923 | 18% |
| Bubble wrap and shrink film | 3923 | 18% |
| Plastic containers and boxes | 3923 | 18% |
New GST on Wooden Packing Boxes
| Wooden Material | HSN Code | New GST Rate |
|---|---|---|
| Wooden crates and pallets | 4415 | 5% |
| Wooden boxes and cases (non-branded) | 4415 | 5% |
| Decorative wooden packaging | 4420 | 18% |
Summary Table: New GST Rates on Common Packing Materials
| Packing Material | Typical Use | New GST Rate |
|---|---|---|
| Corrugated box (paper) | Shipping, storage | 5% |
| Bubble wrap (plastic) | Electronics packaging | 18% |
| Plastic pouch or film | Food/retail wrapping | 18% |
| Wooden crate | Machinery or export packing | 5% |
| Cloth bag or jute sack | Grains, textiles | 5% |
Old GST on Paper-Based Packaging
(Old GST Rates – Applicable Until 21st September)
| Paper Material | HSN Code | GST Rate |
|---|---|---|
| Corrugated boxes/cardboard cartons | 4819 | 12% |
| Paper cones, tubes, spools | 4819 | 12% |
| Paper bags (branded/unbranded) | 4819 | 12% |
Old GST on Plastic Packing Material
| Plastic Material | HSN Code | GST Rate |
|---|---|---|
| Plastic bags, pouches, or films | 3923 | 18% |
| Bubble wrap and shrink film | 3923 | 18% |
| Plastic containers and boxes | 3923 | 18% |
Old GST on Wooden Packing Boxes
| Wooden Material | HSN Code | GST Rate |
|---|---|---|
| Wooden crates and pallets | 4415 | 12% |
| Wooden boxes and cases (non-branded) | 4415 | 12% |
| Decorative wooden packaging | 4420 | 18% |
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Summary Table: Old GST Rates on Common Packing Materials
| Packing Material | Typical Use | GST Rate |
|---|---|---|
| Corrugated box (paper) | Shipping, storage | 12% |
| Bubble wrap (plastic) | Electronics packaging | 18% |
| Plastic pouch or film | Food/retail wrapping | 18% |
| Wooden crate | Machinery or export packing | 12% |
| Cloth bag or jute sack | Grains, textiles | 5% or 12% |
Input Tax Credit on Packing Material
If you’re a business that uses packaging for products, you can claim Input Tax Credit on GST paid for packing materials. To claim ITC, ensure:
- GST invoice has correct HSN Code
- Vendor is GST-registered
- Packaging is used in business operations
GST Compliance Tips for Packaging Businesses
- Register under GST if turnover exceeds ₹40 lakh (goods)
- Use proper HSN Code for different materials
- Apply correct GST rates (5%, 12%, or 18%)
- Issue GST-compliant invoices
- File monthly GSTR-1 and GSTR-3B returns
- Maintain vendor and inventory records for ITC
Understanding the packing material GST rate helps manufacturers, retailers, and distributors control costs, ensure compliance, and correctly price their products. Whether you’re shipping food, electronics, or apparel—packaging tax plays a key role in your final invoice.
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions
-
What is the GST rate on packing materials in India?
- Paper/carton boxes = 12%
- Plastic = 18%
- Wooden crates = 12%
-
What is the plastic packing material GST rate?It is 18%, applicable to all plastic films, wraps, boxes, and containers.
-
Is GST applicable on wooden packaging boxes?Yes. The wooden packing box GST rate is 12%, unless it's a decorative luxury item.
-
Can I claim ITC on packing material used in exports?Yes. Businesses can claim Input Tax Credit and even apply for refunds on zero-rated supplies.
-
Is cloth or jute-based packaging also taxed?Yes, at 5% or 12%, depending on branding and use.
