--- title: "New GST on Plastic Items 2026: 18% Rate on Plastic Products" description: "New GST rate on plastic items in 2026 is 18% on plastic goods, containers, bags and utensils. Use Busy to auto-apply the correct GST on every invoice." canonical: "https://busy.in/gst-rates/plastic-items/" author: "Apurva Maheshwari" published: "2025-05-16T12:45:45.000Z" category: "GST Rates" --- - 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%. # 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 **plastic hsn code and gst rate,** their classification. ## **GST on Plastics in India** Plastic products in India are generally taxable under GST. Most common plastic goods such as packaging films, containers, bottles, jars, household plastic items, carry bags, and plastic furniture are taxed at 18% GST. There is no compensation cess on these common plastic categories. ## **New GST Rate on Plastics in India** For most plastic product categories, the GST rate remains 18% both before and after 22 Sep 2025. So this is not really a broad plastics rate-change category. The meaningful update is that non-electronic toys moved from 12% to 5%, while electronic toys continue at 18%. ## GST on Plastics: Key Product Categories | Type of Plastic Item | HSN Code | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | | --- | --- | --- | --- | | Plastic packaging films, rolls | 3920 / 3921 | 18% | 18% | | Plastic containers, bottles, jars | 3923 | 18% | 18% | | Plastic utensils, kitchenware, household items | 3924 | 18% | 18% | | Plastic furniture, chairs, tables | 9403 | 18% | 18% | | Plastic bags, carry bags | 3923 | 18% | 18% | | Non-electronic plastic toys | 9503 | 5% | 12% | | Electronic plastic toys | 9503 | 18% | 18% | Live Demo Available Today ## Raise Purchase Orders to Plastic Suppliers for Restocking Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST on Plastic Products: Rate by Use** ### **1\. Plastic Packaging Materials** Plastic films, wraps, sheets, rolls, and similar packaging materials under 3920 / 3921 generally attract 18% GST. ### **2\. Plastic Containers and Carry Bags** Articles used for packing or conveyance of goods under 3923, such as plastic containers, jars, bottles, lids, and carry bags, generally attract 18% GST. ### **3\. Plastic Household Items** Plastic tableware, kitchenware, household articles, hygienic items, buckets, mugs, and similar products under 3924 generally attract 18% GST. ### **4\. Plastic Furniture** Plastic furniture and other furniture under 9403 generally attract 18% GST. ### **5\. Plastic Toys** This is the category that changed. Non-electronic toys under 9503 are now 5% GST after 22 Sep 2025, while electronic toys under 9503 continue at 18% GST. Before the change, non-electronic toys were generally at 12%. ## **How to Calculate GST on Plastic Products** For most plastic goods such as packaging films, containers, carry bags, household plastic items, and plastic furniture, the GST rate is **18%**. For **non-electronic plastic toys**, the GST rate is **5%**. ### **The formula when the price is before GST** **GST Amount = Taxable Value × GST Rate** **Final Invoice Value = Taxable Value + GST Amount** ### **Example 1: Plastic containers at 18% GST** Suppose the taxable value of plastic containers is **Rs 10,000**. **GST = 10,000 × 18% = Rs 1,800** **Final Invoice Value = Rs 11,800** ### **Example 2: Plastic carry bags at 18% GST** Suppose the taxable value of plastic carry bags is **Rs 5,000**. **GST = 5,000 × 18% = Rs 900** **Final Invoice Value = Rs 5,900** ### **Example 3: Non electronic plastic toys at 5% GST** Suppose the taxable value of non electronic plastic toys is **Rs 8,000**. **GST = 8,000 × 5% = Rs 400** **Final Invoice Value = Rs 8,400** ### **Formula when price is inclusive of GST** If the selling price already includes GST, use this formula: **Taxable Value = GST Inclusive Price ÷ (1 + GST Rate)** **GST Amount = GST Inclusive Price - Taxable Value** ### **Example 4: Plastic bucket sold at GST inclusive price** Suppose a plastic bucket is sold for **Rs 590**, inclusive of 18% GST. **Taxable Value = 590 ÷ 1.18 = Rs 500** **GST Amount = 590 -500 = Rs 90** ### **Example 5: Non electronic toy sold at GST inclusive price** Suppose a non electronic plastic toy is sold for **Rs 1,050**, inclusive of 5% GST. **Taxable Value = 1,050 ÷ 1.05 = Rs 1,000** **GST Amount = 1,050 - 1000 = Rs 50** ## **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**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) 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. ## About the author **Apurva Maheshwari** 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 ### What is the GST on plastic items like containers and buckets? Most plastic containers, buckets, kitchenware, and similar household plastic items generally attract 18% GST. Containers used for packing goods usually fall under 3923, while household and kitchen plastic articles usually fall under 3924. ### Is GST the same for all plastic products? No. Many common plastic products are taxed at 18%, but there are exceptions. For example, non-electronic toys are now at 5%, while electronic toys are at 18%. ### What is the GST on plastic carry bags? Plastic carry bags generally fall under 3923 and attract 18% GST. ### Can plastic manufacturers claim Input Tax Credit? Generally, yes. Businesses making taxable outward supplies of plastic goods can usually claim ITC on eligible inward supplies, subject to the normal GST conditions and restrictions. ### Are biodegradable plastics taxed differently? Not automatically. There is no blanket special GST exemption just because a product is biodegradable. 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