Packing Charges HSN Code and GST Rate
Packing charges are common in trade and services. Businesses often charge for cartons, wrapping, strapping and handling when they send goods to customers. These charges may appear as a separate line on the invoice or may be included in the price of the goods.
To use the packing charges HSN code correctly and avoid mistakes in GST returns, traders, manufacturers and logistics providers need to understand how packing and forwarding charges are classified under GST and which GST rates generally apply after the changes from 22 September 2025.
What is the HSN Code for Packing and Forwarding
Under GST, packing and forwarding can be treated either as part of the value of the goods or as a separate service. In many cases, packing charges are naturally bundled with the supply of goods and are considered part of a single composite supply. In such cases they follow the HSN code and GST rate of the main goods.
When a business provides an independent packing service such as job work packing or specialised export packing it is treated as a service. In that case the HSN concept is applied through service accounting codes that start with ninety nine and the supply is normally taxed as a standard rate service.
Key Packing Charges HSN Codes and GST Rates after 22 September 2025
| HSN Code | Description | Supply Type | GST Rate |
|---|---|---|---|
| Same as goods | Packing and forwarding that is part of the price of goods | Composite supply with goods | Same as goods |
| 9985 | Packaging services and related support services | Independent job work packing service | 18% |
| 9967 | Services of transport support including loading and handling | Packing charges billed by a transport or logistics provider | 18% |
| 9997 | Other services not elsewhere classified | Miscellaneous packing service that does not fit in a specific group | 18% |
How to Classify Packing Charges HSN Code in GST
The first step is to see whether the packing charges are incidental to the sale of goods. If the seller uses cartons and wrapping only to supply those goods and charges the buyer for this as part of the same contract then the packing charges form part of the value of the goods. In this case the HSN code for the goods is used and packing is not given a separate HSN code.
If a business is hired only to pack goods that belong to another party, for example a job worker who carries out export packing, they are providing a service that is separate from the goods themselves. Such a service is classified under an appropriate service accounting family such as packaging services or other business support services and is usually taxed at the standard service rate.
Where a transporter charges packing and handling at the time of booking goods, such charges are tied to the transport service. They then follow the classification and GST rate of the transport or logistics service subject to the usual conditions for goods transport.
GST Rates for Packing Charges and HSN Code
Under the three slab GST structure that applies from 22 September 2025, most services including packing and related support services remain in the standard 18% slab. Only a limited group of essential services is fully exempt and only a narrow group of sin or luxury items is placed in the 40% slab.
When packing is part of the value of goods, the GST rate on packing charges is the same as the rate on the goods. For example if machinery is taxed at 18%, any packing charges recovered from the buyer for crates and boxes will also suffer 18% because they form part of the value of the machinery. If the goods are taxed at 5%, the packing embedded in the value also suffers 5%.
Where a business raises a separate invoice for an independent packing service, that service is usually taxed at 18% under the chosen service accounting code. The invoice mentions the service description, the service code, the taxable value and the GST amount so that the customer can claim input tax credit if eligible.
If there is doubt whether packing should follow the goods or be billed as a service, businesses should look at the real nature of the contract. If the customer mainly wants goods and packing is only a normal part of supplying those goods it is safer to treat it as part of the goods. The rate may vary depending on specific notifications and conditions so it is important to check the latest position for unusual cases.
Conclusion
The packing charges HSN code in GST depends on whether the charges are part of a composite supply of goods or represent an independent packing service. When they are incidental to the sale of goods they take the HSN code and GST rate of the main goods. When they are billed as a separate service they are classified under suitable service accounting families and usually attract 18% GST.
By identifying the correct nature of packing and forwarding, mapping it to the appropriate goods HSN or service code and applying the correct GST rate in invoices and returns, businesses can keep their pricing clear, support smooth input tax credit for customers and avoid disputes over wrong classification of packing charges.
I’m CA Shivani Kandalkar, a Chartered Accountant based in Mumbai with over 1 year of experience. My focus areas are Taxation and GSTR compliance, where I help individuals and businesses file accurate returns and avoid notices. With a background in M.Com and professional training as a Chartered Accountant, I aim to provide clear, practical guidance that simplifies tax laws and supports better financial decisions.
Frequently Asked Questions
-
What is the HSN code for packing charges?
If packing charges are part of the value of goods they follow the same HSN code as the goods. If they relate to an independent packing service they are classified under service accounting families such as packaging or other business support services that usually carry 18% GST.
-
Does the packing HSN code vary with the product type?
Yes. When packing is part of the sale of goods the HSN code and GST rate change with the goods. For example packing for medicines follows the medicine HSN code, while packing for machinery follows the machinery HSN code.
-
How are packing charges classified for GST?
Packing charges are classified by looking at the main supply. If they are naturally bundled with goods they form part of a composite supply and use the goods HSN. If they are billed as a stand alone service they use a suitable service accounting code and usually attract 18%.
-
Are packing charges taxable under GST?
Yes. Packing and forwarding charges are normally taxable under GST. When included in the price of goods they are taxed at the same rate as the goods. When billed separately as a service they are generally taxed at 18%.
-
How to enter packing charges HSN code in GST returns?
In GST returns, packing charges that follow the goods are included in the HSN wise summary of the goods themselves. Independent packing services are reported under their chosen service accounting code in the service HSN summary, with the taxable value and GST at 18%.