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Key Highlights:
- Within the plastic products category, GST rates range from 5% to 28%, depending on the product type and use.
- Raw plastic materials generally attract lower GST rates, while completed plastic products are taxed higher.
- While packaging and industrial plastics typically fall into the 18% tax bracket, luxury plastic goods could attract a GST of 28%.
- Businesses involved in plastics are usually required to ascribe the correct HSN codes to ensure proper tax return filing and compliance.
Plastics and plastic articles find extensive applications in numerous industries, such as packaging, construction, healthcare, and consumer goods. With the introduction of the goods and services tax (GST) in India, it has become imperative for companies handling plastic products to know the GST rates and HSN (harmonised system of nomenclature) codes applicable.Chapter 39 of the HSN system is dedicated to plastics and articles thereof, giving a systematic procedure for taxation. Classification under this chapter in the right manner is necessary to ensure tax compliance and minimise tax outgo for companies. This article will give detailed insights into GST rates and HSN codes of various plastic products. Also Read - Check out the list of goods and services exempted under GST
GST Rates for Plastics and Articles
The HSN codes serve to harmonise taxation across industries. According to Chapter 39, the GST rates for plastic products vary depending on their type and use. The plastic HSN codes and the GST rate are as follows:
| HSN Codes | Export and Import HSN Codes | Products Description | Rates (%) |
| 3901 to 3013 | 39011010, 39011090, 39012000, 39013000, 39019010, 39019090,39021000, 39022000, 39023000, 39029000,39031100, 39031910, 39031990, 39032000, 39033000, 39039010, 39039020, 39039090,39041010, 39041090, 39042110, 39042190, 39042210, 39042290, 39043010, 39043090, 39044000, 39045010, 39045090, 39046100, 39046910, 39046990, 39049000,39051210, 39051220, 39051290, 39051910, 39051920, 39051990, 39052100, 39052900, 39053000, 39059100, 39059910, 39059990,39061010, 39061090, 39069010, 39069020, 39069030, 39069090,390769, 39076100, 39076910, 39076920, 39076990, 39071000, 39072010, 39072090, 39073010, 39073090, 39074000, 39075000, 39076010, 39076020, 39076090, 39077000, 39079110, 39079120, 39079130, 39079140, 39079150, 39079190, 39079910, 39079920, 39079990,39081010, 39081090, 39089010, 39089020, 39089090,39091010, 39091090, 39092010, 39092090, 39093010, 39093090, 39094010, 39094020, 39094030, 39094040, 39094050, 39094060, 39094090, 39095000,39100010, 39100020, 39100090, 39111010, 39111090, 39119010, 39119090,39121110, 39121120, 39121130, 39121140, 39121190, 39121210, 39121220, 39121230, 39121290, 39122011, 39122019, 39122021, 39122029, 39123100, 39123911, 39123912, 39123919, 39123921, 39123922, 39123929, 39129010, 39129020, 39129090,39131010, 39131090, 39139011, 39139019, 39139020, 39139030, 39139090. | All products, including, but not limited to polymers, polyethers, polyacetals, epoxide resins, polycarbonates, alkyd resins, polyallyl esters, and other polyesters polyamides; phenolic, polyurethane, and amino resins; silicones; petroleum resins, coumarone-indene resins, polyterpenes, polysulfides and polysulfones, and other goods found in Note 3 of this Chapter that are not earlier mentioned in this chapter; Chemical derivatives of cellulose and its byproducts, as not otherwise mentioned or included; Primary forms of natural polymers (such as alginic acid) and modified natural polymers (such as hardened proteins and chemical derivatives of natural rubber) that are not mentioned or included elsewhere. | 18% |
| 3914 | 39140010, 39140020, 39140090 | Ion exchangers fuse the polymer with categories 3901 to 3913 | 18% |
| 3915 | 39151000, 39152000, 39153010, 39153090, 39159010, 39159021, 39159029, 39159030, 39159041, 39159042, 39159049, 39159050, 39159061, 39159062, 39159063, 39159071, 39159072, 39159073, 39159074, 39159075, 39159090 | Waste, parings, scraps of plastic | 5% |
| 3916 | 39161010, 39161020, 39161090, 39162011, 39162019, 39162091, 39162099, 39169010, 39169021, 39169022, 39169023, 39169024, 39169025, 39169026, 39169027, 39169028, 39169031, 39169032, 39169040, 39169050, 39169060, 39169070, 39169080, 39169090 | Monofilaments with a diameter exceeding 1 mm; rods, sticks, and profiles in a plastic form, whether surface treated or not | 18% |
| 3917 | 39171010, 39171020, 39172110, 39172190, 39172200, 39172310, 39172390, 39172910, 39172920, 39172930, 39172940, 39172950, 39172990, 39173100, 39173210, 39173220, 39173290, 39173300, 39173910, 39173920, 39173990, 39174000 | Plastic tubes, pipes, hoses, and their fittings | 18% |
| 3918 | 39181010, 39181090, 39189010, 39189020, 39189090 | Plastic floor coverings, whether self-adhesive or otherwise, in rolls or tiles; plastic wall or ceiling coverings | 18% |
| 3919 | 39191000, 39199010, 39199020, 39199090 | In rolls with ordinary or self-adhesive backing plates; in sheets; in rolls and films; in foil; and tapes and strips in flat forms | 18% |
| 3920 | 39201011, 39201012, 39201019, 39201091, 39201092, 39201099, 39202010, 39202020, 39202090, 39203010, 39203020, 39203090, 39204300, 39204900, 39205111, 39205112, 39205119, 39205191, 39205192, 39205199, 39205911, 39205912, 39205919, 39205991, 39205992, 39205999, 39206110, 39206120, 39206190, 39206210, 39206220, 39206290, 39206310, 39206320, 39206390, 39206911, 39206912, 39206919, 39206921, 39206922, 39206929, 39206931, 39206932, 39206939, 39206991, 39206992, 39206999, 39207111, 39207119, 39207121, 39207129, 39207191, 39207192, 39207199, 39207311, 39207312, 39207319, 39207321, 39207322, 39207329, 39207391, 39207392, 39207399, 39207911, 39207912, 39207919, 39207991, 39207992, 39207999, 39209111, 39209112, 39209119, 39209211, 39209212, 39209219, 39209291, 39209292, 39209299, 39209310, 39209320, 39209390, 39209410, 39209420, 39209490, 39209911, 39209912, 39209919, 39209921, 39209922, 39209929, 39209931, 39209932, 39209939, 39209941, 39209942, 39209949, 39209951, 39209952, 39209959, 39209960, 39209991, 39209992, 39209999 | Included in this class are other non-cellular plastic plates, sheets, films, foils, and strips, which are not laminated, supported, reinforced, or mixed with any materials for that matter. | 18% |
| 3921 | 39211100, 39211200, 39211310, 39211390, 39211400, 39211900, 39219010, 39219021, 39219022, 39219023, 39219024, 39219025, 39219026, 39219029, 39219031, 39219032, 39219033, 39219034, 39219035, 39219036, 39219039, 39219091, 39219092, 39219093, 39219094, 39219095, 39219096, 39219099 | Other plastic plates, bands and sheets, foils | 18% |
| 3922 | 39221000, 39222000, 39229000 | Plastic sanitary ware such as toilet pans, sinks, washbasins, bidets, toilettes and coverings, showers, flushing cisterns, etc. | 18% |
| 3923 | 39231010, 39231020, 39231030, 39231040, 39231090, 39232100, 39232910, 39232990, 39233010, 39233090, 39234000, 39235010, 39235090, 39239010, 39239020, 39239090 | Packing material for plastics, such as stoppers, covers, caps, and other closures | 18% |
| 3924 | 39241010, 39241090, 39249010, 39249020, 39249090 | Kitchenware, tableware, such as various household items, and also cosmetics and plastic sanitary items | 18% |
| 3925 | 39251000, 39252000, 39253000, 39259010, 39259090 | Plastic builders not elsewhere specified | 18% |
| 3926 | 39261011, 39261019, 39261091, 39261099, 39262011, 39262019, 39262021, 39262029, 39262031, 39262039, 39262041, 39262049, 39262091, 39262099, 39263010, 39263090, 39264011, 39264019, 39264021, 39264029, 39264031, 39264039, 39264041, 39264049, 39264051, 39264059, 39264060, 39264091, 39264099, 39269010, 39269021, 39269029, 39269031, 39269039, 39269041, 39269049, 39269051, 39269059, 39269061, 39269069, 39269071, 39269079, 39269080, 39269091, 39269099 | Various products made of plastics and other media (other than plastic bangles, PVC belt conveyors, plastic beads, plastic tarpaulins, medical-grade sterile disposable gloves, and plastic raincoats) are classified from 3901 to 3914. | 18% |
| 3926 | 39261011, 39261019, 39261091, 39261099, 39262011, 39262019, 39262021, 39262029, 39262031, 39262039, 39262041, 39262049, 39262091, 39262099, 39263010, 39263090, 39264011, 39264019, 39264021, 39264029, 39264031, 39264039, 39264041, 39264049, 39264051, 39264059, 39264060, 39264091, 39264099, 39269010, 39269021, 39269029, 39269031, 39269039, 39269041, 39269049, 39269051, 39269059, 39269061, 39269069, 39269071, 39269079, 39269080, 39269091, 39269099 | Plastic bangles | NIL |
| 3926 | 39261011, 39261019, 39261091, 39261099, 39262011, 39262019, 39262021, 39262029, 39262031, 39262039, 39262041, 39262049, 39262091, 39262099, 39263010, 39263090, 39264011, 39264019, 39264021, 39264029, 39264031, 39264039, 39264041, 39264049, 39264051, 39264059, 39264060, 39264091, 39264099, 39269010, 39269021, 39269029, 39269031, 39269039, 39269041, 39269049, 39269051, 39269059, 39269061, 39269069, 39269071, 39269079, 39269080, 39269091, 39269099 | Feeding bottles | 12% |
| 3926 | 39261011, 39261019, 39261091, 39261099, 39262011, 39262019, 39262021, 39262029, 39262031, 39262039, 39262041, 39262049, 39262091, 39262099, 39263010, 39263090, 39264011, 39264019, 39264021, 39264029, 39264031, 39264039, 39264041, 39264049, 39264051, 39264059, 39264060, 39264091, 39264099, 39269010, 39269021, 39269029, 39269031, 39269039, 39269041, 39269049, 39269051, 39269059, 39269061, 39269069, 39269071, 39269079, 39269080, 39269091, 39269099 | Plastic beads | 12% |
| 3926 | 39261011, 39261019, 39261091, 39261099, 39262011, 39262019, 39262021, 39262029, 39262031, 39262039, 39262041, 39262049, 39262091, 39262099, 39263010, 39263090, 39264011, 39264019, 39264021, 39264029, 39264031, 39264039, 39264041, 39264049, 39264051, 39264059, 39264060, 39264091, 39264099, 39269010, 39269021, 39269029, 39269031, 39269039, 39269041, 39269049, 39269051, 39269059, 39269061, 39269069, 39269071, 39269079, 39269080, 39269091, 39269099 | Plastic raincoats, medical-grade sterile disposable gloves, PVC belt conveyors, and plastic tarpaulins. | 18% |
Also Read - Understand the working of GST in India
Simplifying Chapter 39 for Correct GST Return Filing
Businesses need to understand the rates of goods and services tax and the harmonised system code for packing materials to ensure full tax compliance and avoid unnecessary penalties.When correctly categorised under Chapter 39, a proper declaration will help the businesses file their taxes punctually and even claim available credits promptly.Moreover, businesses need to keep updated with GST amendments for effective decision-making on tax planning and better operational efficiency. With proper compliance with the plastic HSN code classification, the tax audit would be smoother, and there would be no room for unnecessary disputes with tax authorities.You can also use the GST calculator to find the GST payable so that you can file your returns timely and correctly. The GST calculator is a simple online tool for quick calculations.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the rate of GST for plastic packaging materials?
Plastic packaging materials (HSN 3923), in general, attract an 18% GST rate. These comprise materials like plastic boxes, bottles, containers, and other materials that are used as packaging material by industries in general. Because packaging is critical in product safety and transportation, accurate classification under HSN 3923 provides the right taxation.
Is every plastic household item charged the same GST rate?
No, simple plastic household products (HSN 3924) are charged 18%, whereas luxury products like plastic furniture can be under the 28% category. Plastic kitchenware, storage containers, and plastic cutlery are all under the general 18% category, while high-end plastic furniture and ornaments are charged more.
Is recycled plastic liable to GST?
Yes, plastic waste and recycled plastic (HSN 3915) are GST-taxable at a standard 18% rate. These comprise materials reclaimed from plastic recycling, plastic scrap, and rejected plastic materials. The tax on recycled plastic guarantees regulation and sustainability for the plastics industry.
Are all plastic pipes and fittings subject to the same GST rate?
Plastic pipes and fittings (HSN 3917) are generally subject to an 18% GST. These encompass products utilised for plumbing, irrigation, and industrial use. However, certain pipes or those for utilisation in certain industries, like medical or agricultural uses, could be subject to varying treatments.
What is the GST treatment on plastic sheets and films?
Plastic sheets and films (HSN 3920-3921) are charged at 12% or 18% depending on their specification and application. Transparent sheets, laminated films, and special plastic materials applied in production and packaging could have different rates of taxation depending on their makeup and purpose.
Are plastic toys included in Chapter 39?
No, plastic toys are classified under Chapter 95 and separately taxed at 12% or 18%. Though toys are manufactured with plastic materials, they are separately classified because of their unique purpose and buyer group. Companies that trade in plastic toys must consult Chapter 95 for the correct tax classification.
What is the HSN code for plastic water storage tanks?
Plastic storage tanks for water come under the purview of HSN 3925 and are subject to an 18% GST. These tanks are common in households, commercial areas, and industries for storing water, chemicals, and other liquids. Their placement under HSN 3925 brings standardisation to the tax rate for water storage solutions.
Are plastic medical products charged at the same tax rate?
Plastic products of medical grade could be charged a reduced GST rate based on their classification and purpose. Plastic syringes, IV tubes, and packaging materials for medical use could be eligible for concessional GST rates if they are categorised as essential medical products.
Is a business entitled to claim ITC on plastic products?
Yes, companies can avail of Input Tax Credit (ITC) for GST paid on plastic products used in production or resale. ITC enables companies to counter the GST paid against the GST payable, thus minimising the overall tax burden. Documentation and adherence to the GST rules are imperative to avail of the ITC benefit.
Can GST be levied on biodegradable plastics?
Yes, biodegradable plastics, too, attract GST, although some agricultural-use plastics would qualify for the lower 5% slab. Biodegradable plastics are picking up popularity owing to their environment-friendliness, and taxation varies based on the purpose of use and product categorisation under the GST regime.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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