GST Rate on Paper bag as per Notification 9/2025

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....ST Rate on Paper bag as per Notification 9/2025<br> Query (Issue) Started By: - RAMNIRANJAN KANDOI Dated:- 3-1-2026 Last Reply Date:- 4-1-2026 Goods and Services Tax - GST<br>Got 1 Reply<br>GST<br>As per the NOTIFICATION NO. 9/2025-Central Tax (Rate) New Delhi, the 17th September, 2025, there is an entry under under Schedule I -2.5% for Paper Bag at Sr. No&nbsp;319. CH 39, 48 Paper Sacks/Bags and ....

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....bio-degradable bags.&nbsp; There is a confusion in the market that the GST rate for Papar Bag is 18%. Can you pls confirm when 5% is applicable and when 18% to be applied. If 18% is to be charged then what would would be the entry no. from the said Notification. Reply By Ryan Vaz: The Reply: * Paper bags made predominantly of paper (HSN 4819) are taxable at 5% GST under Sr. No. 319 of Sche....

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....dule I. * Plastic carry bags (HSN 3923) are taxable at 18% GST under Schedule III (18%). * Paper bags do NOT attract 18% GST merely because they are used for packing or carrying goods. Raj Packaging Industries - AAR Gujarat (2020) Citation: 2020 (34) G.S.T.L. 513 (AAR-GST) Held: * Paper bags made from kraft paper are classifiable under HSN 4819 * GST rate applicable is 5% * ....

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....Usage as carry bags does not change classification ?? Key observation: "Material composition is decisive, not end-use." M/s Umiya Paper Bags - AAR Gujarat (2021) Citation: GUJ/GAAR/R/2021/24 Held: * Paper bags including grocery and shopping bags are HSN 4819 * GST rate 5% applicable * Market confusion due to plastic bag rate is misplaced<br> Discussion Forum - Knowledge Sharing ....