Plastic HSN Code for GST Filing
Plastic products and raw materials are used in almost every industry from packaging and household goods to engineering components. Knowing the correct plastic HSN code and GST rate is essential for manufacturers, traders and retailers to issue correct invoices and claim input tax credit smoothly.
What is the HSN Code for Plastic Products and Raw Materials?
Under GST, plastic is mainly covered under chapter 39 which deals with plastics and articles of plastics. Primary plastic raw materials such as polymer resins are classified under headings starting from 3901, while finished plastic goods like containers and fittings are classified under later headings like 3923 and 3926.
The correct HSN code depends on whether you are dealing with raw material, intermediate goods or final products. Using the nearest matching description from the tariff helps in choosing the right code for your plastic items.
| HSN Code | Product name | Product description | GST rate |
|---|---|---|---|
| 3901 | Polymer resins | Primary plastic resins such as polyethylene and polypropylene in granule or flake form | 18% |
| 3923 | Plastic packing materials | Plastic bottles, jars, containers and similar packing articles | 18% |
| 3926 | Other plastic articles | Miscellaneous plastic items, parts and accessories not covered more specifically elsewhere | 18% |
How Does GST Apply to Plastic Goods and Packaging?
Most plastic goods and plastic raw materials attract GST at 18%. This includes polymer resins, plastic containers, household plastic items and many industrial plastic parts unless a specific exemption notification applies.
Plastic goods supplied as part of a composite supply may follow the rate of the principal supply. For example, plastic containers supplied along with a product may be treated as part of the product value instead of being taxed separately.
Why Are Plastic Products Classified Separately Under HSN Code?
Plastic products are extremely diverse, ranging from basic packing bags to complex engineering components. The HSN system therefore gives separate headings for raw materials, semi finished goods and finished plastic products so that the tax treatment reflects the correct nature of supply.
Classifying plastic goods correctly also helps in data analysis for trade and policy, as authorities can track how much tax revenue comes from different plastic product categories.
How to Classify Plastic Products for GST Returns?
To classify plastic products correctly, businesses should study the product description, material composition and use. Comparing this information with chapter 39 headings and explanatory notes helps in choosing the closest HSN code.
Once the correct code is selected, it should be stored in the item master of the accounting or billing software. This ensures that every invoice carries the same HSN code and GST rate, which in turn leads to smooth reporting in GST returns.
Conclusion
Plastic products and raw materials are primarily classified under chapter 39 of the HSN system and usually attract GST at 18%. Separating raw materials from finished goods and mapping each item correctly in your system helps in error free invoicing and reporting. Consistent use of the correct plastic HSN code makes GST compliance easier for the entire supply chain.
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions
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What is the HSN code for plastic products?
Plastic products are generally classified under chapter 39. Raw materials such as polymer resins fall under HSN codes starting from 3901, while finished plastic items and accessories fall under headings like 3923 and 3926.
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How does the GST rate apply to plastic products and raw materials?
Most plastic raw materials and finished plastic products attract GST at 18%. Only items that are specifically exempt or covered under a concessional notification will have a different rate.
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Are plastic packaging and plastic products classified under the same HSN code?
Plastic packaging materials such as bottles and containers are usually classified under HSN 3923, while other plastic articles may fall under different headings like 3926. So packaging and other products may use different codes within chapter 39.
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How do I file the plastic HSN code correctly for GST returns?
Ensure that every plastic item in your item master is mapped with the correct HSN code and GST rate. Then verify that sales data flows correctly into GSTR one with the same codes so that buyers can claim input tax credit without mismatch.
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Does the HSN code for plastic change based on the type of product?
Yes, the HSN code can change depending on whether the plastic is in the form of raw material, semi finished sheet or final product. You should always classify based on the description that best matches the goods you supply.