Explore the GST rates and HSN codes applicable to plastics and articles thereof under Chapter 39. This guide provides detailed insights for FY 2025-26, helping businesses navigate tax compliance efficiently.
GST Rates & HSN Codes
FAQs on GST for Plastics
Understand the applicable GST rates and HSN codes for various plastic products under Chapter 39.
HSN Code 3901
Polymers of ethylene, in primary forms.
GST Rate: 18%
Includes polyethylene, LDPE, HDPE
Used in manufacturing plastic bags and containers
HSN Code 3902
Polymers of propylene or of other olefins, in primary forms.
GST Rate: 18%
Includes polypropylene
Commonly used in packaging and textiles
HSN Code 3923
Articles for the conveyance or packing of goods, of plastics.
GST Rate: 18%
Includes plastic boxes, crates, and similar articles
Essential for logistics and transportation industries
HSN Code 3926
Other articles of plastics and articles of other materials of headings 3901 to 3914.
GST Rate: 28%
Includes plastic furniture and fittings
Covers a wide range of miscellaneous plastic products
What is the GST rate for polyethylene under HSN Code 3901?
The GST rate for polyethylene under HSN Code 3901 is 18%. This includes various forms such as LDPE and HDPE, commonly used in packaging.
How do I determine the correct HSN code for my plastic product?
Identify the primary material and form of your product. Refer to Chapter 39 of the GST tariff schedule to match your product with the appropriate HSN code.
Are all plastic articles taxed at the same GST rate?
No, GST rates vary based on the type of plastic and its application. Most primary forms are taxed at 18%, while certain articles like furniture may attract a 28% rate.
Is there a difference in GST rates between old and new tax regimes?
GST rates are uniform across all tax regimes. The distinction between old and new regimes applies to income tax, not GST.
What documentation is required for GST compliance on plastic products?
Maintain proper invoices, e-way bills, and records of input tax credit claims. Ensure HSN codes are correctly mentioned in all documents.
How does the GST rate impact the pricing of plastic products?
GST rates directly affect the final price of products. Higher rates increase costs, which may be passed on to consumers, affecting demand and sales.
Can I claim input tax credit on GST paid for plastic raw materials?
Yes, businesses can claim input tax credit on GST paid for raw materials used in manufacturing, provided they meet all compliance requirements.
What are the penalties for incorrect HSN code usage?
Incorrect HSN code usage can lead to penalties, including fines and interest on unpaid GST. Ensure accuracy to avoid compliance issues.