New Packing Material GST Rate: Paper, Plastic, and Others
- GST rates for packing materials vary by type, with paper at 5%, plastic at 18%, and wooden materials at 5% or 18% for decorative items.
- Businesses can claim Input Tax Credit on GST paid for packing materials if they use them in operations and have proper documentation.
- New GST rates for paper packaging, effective after September 2025, are reduced from 12% to 5%.
- Plastic packaging materials, such as bags, films, and containers, remain taxed at 18%.
- Wooden crates and non-decorative boxes have a GST rate of 5%, while decorative wooden packaging is taxed at 18%.
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.
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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 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 has revised the GST structure on packaging materials effective 22nd September 2025. The key change is the reduction in GST on several eco friendly and paper based packaging materials, while plastic based packaging largely continues under the 18% slab.
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% |
Paper Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Paper Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Paper Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
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 Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Plastic Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Plastic Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Plastic packaging continues to attract 18% GST under the revised structure.
GST on Wooden Packing Boxes
| 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 Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Wooden Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Wooden Material
HSN Code
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Wooden industrial packaging has been reduced from 12% to 5%, while decorative wooden packaging remains at 18%.
Summary Table: GST on Common Packing Materials
| 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% | 5% or 12% |
Packing Material
Typical Use
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Packing Material
Typical Use
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Packing Material
Typical Use
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Packing Material
Typical Use
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
Packing Material
Typical Use
GST Rate
(After 22nd Sept 2025)
GST Rate
(Before 22nd Sept 2025)
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 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% 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.
