--- title: "New GST on Packing Material 2026: 18% Rate on Packaging & Packing" description: "New GST rate on packing material in 2026 is 18% on plastic, paper and wooden packaging boxes. Busy ensures accurate GST billing on every sale and purchase." canonical: "https://busy.in/gst-rates/packing-material/" author: "Nishant" published: "2025-05-19T11:27:31.000Z" category: "GST Rates" --- - GST rates for packing materials depend on the product type and applicable HSN classification. Paper packaging materials under relevant classifications may attract **5% GST**, plastic packaging materials may attract **18% GST**, and wooden packing materials may attract GST based on their applicable classification. - Businesses can claim eligible Input Tax Credit on GST paid for packing materials used for business purposes, subject to applicable GST conditions. - Paper packaging materials under applicable classifications may attract **5% GST** as per the revised GST structure. - Plastic packaging materials such as bags, films, and containers attract GST based on their specific HSN classification and product category. - Wooden crates, packing cases, and similar materials should be classified under the applicable HSN code to determine the correct GST rate. # 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 HSN code** and GST rate tax slabs for paper, plastic, and wooden materials. ## **Are Packing Materials Taxable Under GST?** Yes. Almost all types of packing materials are considered taxable goods under GST, and the applicable GST rate depends on the material type and HSN classification. This includes: - Carton boxes - Plastic bags and films - Wooden boxes or crates - Glass containers - Metal drums and cans The **gst on packing** varies based on the applicable HSN classification, material type, and product category. **Also Know About –** [Packing Material HSN Code](https://busy.in/hsn/) ## **New GST Rate on Paper Based Packaging in India** The Government of India has revised the GST structure applicable to certain packaging materials effective 22nd September 2025. The **4819 hsn code gst rate** applies to eligible paper and paperboard packaging products classified under HSN 4819, including corrugated boxes, cartons, bags, and similar packaging materials, based on the applicable GST classification. Below is the updated GST structure along with the earlier applicable rates for reference. No compensation cess applies to packaging materials. ## **GST on Paper Based Packaging** | Paper Material | HSN Code | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | | --- | --- | --- | --- | | Corrugated boxes and cardboard cartons | 4819 | 5% | 12% | | Paper cones, tubes, spools | 4819 | 5% | 12% | | Paper bags (branded or unbranded) | 4819 | 5% | 12% | The reduction from 12% to 5% is aimed at encouraging sustainable and paper based alternatives. ## GST on Plastic Packing Material | Plastic Material | HSN Code | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | | --- | --- | --- | --- | | Plastic bags, pouches, films | 3923 | 18% | 18% | | Bubble wrap and shrink film | 3923 | 18% | 18% | | Plastic containers and boxes | 3923 | 18% | 18% | Plastic packaging continues to attract 18% GST under the revised structure. Live Demo Available Today ## Raise Supplier POs for Packing Materials Before Production Run Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST on Wooden Packing Boxes Wooden packing materials such as crates, pallets, and cases are classified under **HSN 4415**. The applicable **4415 hsn code gst rate** depends on the product description and GST classification. | Wooden Material | HSN Code | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | | --- | --- | --- | --- | | Wooden crates and pallets | 4415 | 5% | 12% | | Wooden boxes and cases (non branded) | 4415 | 5% | 12% | | Decorative wooden packaging | 4420 | 18% | 18% | Wooden industrial packaging has been reduced from 12% to 5%, while decorative wooden packaging remains at 18%. ## Summary Table: GST on Common Packing Materials The **corrugated box gst rate** depends on the applicable HSN classification. Corrugated boxes classified under HSN 4819 generally attract **5% GST** under the revised structure. | Packing Material | Typical Use | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | | --- | --- | --- | --- | | Corrugated box (paper) | Shipping and storage | **5%** | **12%** | | Bubble wrap (plastic) | Electronics packaging | **18%** | **18%** | | Plastic pouch or film | Food and retail wrapping | **18%** | **18%** | | Wooden crate | Machinery or export packing | **5%** | **12%** | | Cloth bag or jute sack | Grains and textiles | **5%** | **Applicable rate depends on classification** | ## **How to Calculate GST on New Packing Material** Let’s understand it with the help of an example. For instance, assume a business buys 1,000 corrugated boxes for shipping. Unit Price: ₹50 Total Taxable Value: ₹50,000 (1,000 boxes × ₹50) Material: Paper/Cardboard (5% GST under revised 2025 rules). Step-by-Step Calculation: Calculate GST Amount: ₹50,000 × (5 / 100) = ₹2,500. Determine Tax Split (Intra-state): CGST (2.5%): ₹1,250 SGST (2.5%): ₹1,250. Final Invoice Total: ₹50,000 + ₹2,500 = ₹52,500. ## **Input Tax Credit on Packing Material** If you’re a business that uses packaging for products, you can [claim Input Tax Credit](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on GST paid for packing materials. To claim ITC, ensure: - GST invoice has correct [HSN Code](https://busy.in/hsn/) - Vendor is [GST-registered](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) - 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% or 18%) - Issue [GST-compliant invoices](https://busy.in/gst/a-guide-to-invoicing-under-gst/) - File monthly [GSTR-1](https://busy.in/gst/gst-returns/) and [GSTR-3B](https://busy.in/gst/a-guide-to-gstr-3b-what-is-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. ## About the author **Nishant** 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 and carton boxes classified under applicable HSN codes may attract **5% GST**. - Plastic packaging materials generally attract **18% GST** based on their applicable classification. - Wooden crates and packing cases classified under applicable HSN codes may attract **5% GST**. The applicable **packing material hsn code and gst rate** should be verified based on the product type and HSN classification. ### What is the plastic packing material GST rate? Plastic packing materials generally attract **18% GST** based on their applicable HSN classification. Products such as plastic films, wraps, boxes, and containers may fall under different classifications, so the applicable GST rate should be verified based on the specific product category. ### Is GST applicable on wooden packaging boxes? Yes. Wooden packing boxes and crates classified under HSN 4415 may attract GST based on the applicable classification and GST provisions. Decorative wooden articles may have different GST treatment based on their applicable HSN classification. ### 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. GST on cloth or jute-based packaging depends on the applicable HSN classification and product type. The applicable rate should be determined based on the specific material and use. ## 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 Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [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/)