https://www.taxtmi.com/highlights?id=97082 Classification turns on the material and HSN heading: the bags are classified under Chapter 39 (plastics, heading 3923) regardless of claimed compostability. The Authority finds a compostability certificate was produced but holds it lacks competence to verify scientific biodegradability or the sufficiency of testing procedures; that determination lies with environmental authorities and falls outside its jurisdiction under the CGST framework. The concessional GST rate for 'Paper Sacks/Bags and bio-degradable bags' is conditional on actual biodegradability; if the goods are biodegradable the concessional 5% rate applies, otherwise general Chapter 39 rates apply. en-us Sat, 21 Feb 2026 12:56:36 +0530 Sat, 21 Feb 2026 12:56:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=97082 Classification turns on the material and HSN heading: the bags are classified under Chapter 39 (plastics, heading 3923) regardless of claimed compostability. The Authority finds a compostability certificate was produced but holds it lacks competence to verify scientific biodegradability or the sufficiency of testing procedures; that determination lies with environmental authorities and falls outside its jurisdiction under the CGST framework. The concessional GST rate for 'Paper Sacks/Bags and bio-degradable bags' is conditional on actual biodegradability; if the goods are biodegradable the concessional 5% rate applies, otherwise general Chapter 39 rates apply. Highlights GST Sat, 21 Feb 2026 12:56:36 +0530 https://www.taxtmi.com/highlights?id=97082