New GST on Plastic Items: Packaging, Utensils, and More
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.
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.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the GST on plastic items like containers and buckets?18% GST applies, under HSN code 3924.
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Is GST the same for all plastic products?Mostly yes — 18% GST, with some exceptions (toys, films).
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What is the GST on plastic carry bags?18% GST under HSN 3923.
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Can plastic manufacturers claim Input Tax Credit?Yes, ITC is allowed on inputs for manufacturing and distribution.
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Are biodegradable plastics taxed differently?No special exemption; most taxed at 18%.