New GST on Plastic Items: Packaging, Utensils, and More
Quick Summary
- The new GST rate for most plastic items in India is 18%, including packaging materials, containers, utensils, furniture, and bags.
- Plastic toys have a GST rate of either 5% or 18%, depending on the type of toy.
- Manufacturers and traders can claim Input Tax Credit on raw materials and services used in production and distribution of plastic items.
- Businesses must register for GST if their turnover exceeds ₹40 lakhs and follow correct HSN codes and GST rates for compliance.
- Biodegradable plastics do not have special tax exemptions and are generally taxed at 18%.
Plastic is everywhere—from carry bags to storage containers, bottles, packaging wraps, and utensils. If you’re a seller, manufacturer, or consumer, it’s important to know how GST applies to plastic goods. Let’s break down the gst on plastic items, their classification, and rates.
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New GST Rate on Plastics in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common plastic product categories (no compensation cess).
New GST on Plastics: Key Product Categories
| Type of Plastic Item | HSN Code | New GST Rate |
|---|---|---|
| Plastic packaging films, rolls | 3920 / 3921 | 18% |
| Plastic containers, bottles, jars | 3923 | 18% |
| Plastic utensils (plates, cups) | 3924 | 18% |
| Plastic furniture (chairs, tables) | 9403 | 18% |
| Plastic bags, carry bags | 3923 | 18% |
| Plastic toys | 9503 | 5% or 18% |
Old GST on Plastics: Key Product Categories
(Old GST Rates – Applicable Until 21st September)
| Type of Plastic Item | HSN Code | Old GST Rate |
|---|---|---|
| Plastic packaging materials (films, wraps) | 3920 / 3921 | 18% |
| Plastic household items (buckets, kitchenware, containers) | 3924 | 18% |
| Plastic furniture (chairs, stools, molded items) | 9403 | 18% |
| Plastic toys | 9503 | 12% or 18% |
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Old GST in Plastic Products: Rate by Use
1. Plastic Packaging Materials
Includes shrink wraps, bubble wraps, packaging films, stretch films, etc. (HSN 3920 / 3921)
GST Rate: 18%
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2. Plastic Household Items
Includes buckets, mugs, kitchenware, containers (HSN 3924)
GST Rate: 18%
3. Plastic Furniture
Chairs, stools, molded plastic furniture fall under HSN 9403.
GST Rate: 18%
4. Plastic Toys
Non-electronic toys attract 12%, battery-operated or remote-controlled toys attract 18% GST (HSN 9503).
Input Tax Credit (ITC) for Plastic Manufacturers and Traders
- Raw materials like plastic granules, colors, molds
- Machinery and tools for production
- Transport and logistics
- Packaging, labeling, marketing services
Know how to claim Input Tax Credit correctly on plastic items used for business.
GST Compliance for Plastic Industry
- Register under GST if annual turnover exceeds ₹40 lakhs
- Use correct HSN code on all invoices
- Charge appropriate GST rate based on classification
- File monthly or quarterly GST returns on time
Understanding the gst on plastic items helps ensure proper billing, tax planning, and smooth compliance for manufacturers, sellers, and traders alike.
