TaxTMI 
TaxTMI 
2026 (8) TMI 570
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....r to other goods of Heading 4819, which covers cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding, or webs of cellulose fibres. 3. The applicant has submitted that they have filed the present application for Advance Ruling exclusively for the purpose of obtaining a determination with respect to the correct classification and the applicable rate of GST on paper bags manufactured, traded and sold by them. Images of the products of the applicant are as under: 4. The question raised by the applicant is as under: 1. Whether the supply of 'Paper Bags' made out of paper or paper board, classifiable under Heading 4819 and more specifically under Tariff Item 48194000 (sacks and bags, including cones, of paper, paperboard, cellulose wadding or webs of cellulose fibres"), is liable to Goods and Service Tax (GST) at the rate of 18% under Entry No. 185 of Schedule II to Notification No. 01/2017-Central Tax (Rate), as amended, which specifically covers all goods under Heading 4819 (except 4819.10 & 4819.20), including sacks and bags, or whether the same could fall under the general and residual entry No. 319 of Schedule I (5%) inserte....
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....broad commodity description and does not alter the tariff-based classification established under the Customs Tariff Act. Therefore, once goods fall within heading 4819 - a specific heading for packing containers - they are excluded from the general coverage of "paper sacks/bags" under Entry 319. • Paper bags made of paper fall under heading 4819 which covers packing containers of paper, paperboard, cellulose wadding or webs of cellulose fibres. Specifically, tariff item 48194000 reads: "Sacks and bags, including cones, or paper or paperboard," hence, paper bags are clearly covered here. • Entry 185, Schedule II (18%) of Notification No. 01/2017-Central Tax (Rate) covers heading 4819 (except 481910, 481920) & includes sacks and bags under 48194000, attracting 18% GST. • Entry 319, Schedule I (5%) (of Notification No. 01/2017-Central Tax (Rate) as amended by Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025) is residual covering paper sacks/bags and biodegradable bags of Chapters 39 or 48, meant for goods not specifically classified, it does not override the specific entry under 4819. • As per established law, sp....
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....s Tariff Act, 1975, the goods fall under Heading 4819 are "Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres" AND Tariff Item 48194000 : "Sacks and bags, including cones, of paper, paperboard, cellulose wadding or webs of cellulose wadding or webs of cellulose fibres"; therefore, the subject goods squarely fall within Heading 4819 and specifically under subheading 48194000. 10. The applicant has further submitted that there are two entries under Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 which are applicable to their product i.e. (i) Entry No. 319 of Schedule I (5%) of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 covering paper sacks/bags and biodegradable bags of Chapters 39 or 48 & (ii) Entry No.185, Schedule II (18%) "4819 (except 4819.10, 4819.20) - All Goods (other than Cartons, boxes and cases of, - (a) corrugated paper or paper board; or (b) non-corrugated paper or paper board)". The applicant has also submitted that Entry 319, Schedule I (5%) of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 is residual entry covering paper sacks/bags and biodegrada....
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....is Chapter does not cover: (a) articles of Chapter 30; (b) stamping foils of heading 3212; (c) perfumed papers or papers impregnated or coated with cosmetics (Chapter 33); (d) paper or cellulose wadding impregnated, coated or covered with soap or detergent (heading 3401), or with polishes, creams or similar preparations (heading 3405); (e) sensitised paper or paperboard of headings 3701 to 3704; (f) paper impregnated with diagnostic or laboratory reagents (heading 3822); (g) paper-reinforced stratified sheeting of plastics, or one layer of paper or paperboard coated or covered with a layer of plastics, the latter constituting more than half the total thickness, or articles of such materials, other than wall coverings of heading 4814 (Chapter 39); (h) articles of heading 4202 (for example, travel goods); (ij) articles of Chapter 46 (manufactures of plaiting material); (k) paper yarn or textile articles of paper yarn (Section XI); (l) articles of Chapter 64 or Chapter 65; (m) abrasive paper or paperboard (heading 6805) or paper or paperboard-backed mica (heading 6814) (paper an....
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....throughout the mass; or (c) containing more than 3% ash and having a brightness of 60% or more ;or (d) containing more than 3% but not more than 8% ash, having a brightness less than 60%, and a burst index equal to or less than 2.5kPa. m2/g; or (e) containing 3% ash or less, having a brightness of 60% or more and a burst index equal to or less than 2.5 kPa.m2/g. (B) For paper or paperboard weighing more than 150 g/m2 : (a) coloured throughout the mass; or (b) having a brightness of 60% or more, and 1. a caliper of 225 micrometres (microns) or less, or 2. a caliper of more than 225 micrometres (microns) but not more than 508 micrometres (microns) and an ash content more than 3%; or (c) having a brightness of less than 60%, a caliper of 254 micrometres (microns) or less and an ash content more than 8%. Heading 4802 does not, however, cover filter paper or paperboard (including tea-bag paper) or felt paper or paperboard. 6. In this Chapter-kraft paper and paperboard means paper and paperboard of which not less than 80% by weight of the total fibre content consists of fibres obtained by t....
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....hich are not merely subsidiary to the primary use of the goods, fall in Chapter 49. SUB-HEADING NOTES: 1. For the purposes of sub-headings 4804 11 and 4804 19, 'Kraft-liner' means machine-finished or machine-glazed paper and paperboard, of which not less than 80% by weight of the total fibre content consists of wood fibres obtained by the chemical sulphate or soda processes, in rolls, weighing more than 115 g/m2 and having a minimum Mullen bursting strength as indicated in the following table or the linearly interpolated or extrapolated equivalent for any other weight. Weight g/m2 Minimum Mullen bursting strength (kPa) 115 393 125 417 200 637 300 824 400 961 2. For the purposes of sub-headings 4804 21 and 4804 29, -sack kraft paper means machine-finished paper, of which not less than 80% by weight of the total fibre content consists of fibres obtained by the chemical sulphate or soda processes, in rolls, weighing not less than 60 g/m2 but not more than 115 g/m2 and meeting one of the following sets of specifications: (a) having a Mullen burst index of not less than 3.7 kPa m2/g and a stretch factor of more than....
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..... "Supplementary Notes: Notwithstanding anything contained in Note 12, if paper and paper products of heading 4811, 4816 or 4820 are printed with any character, name, logo, motif or format, they shall remain classified under the respective headings as long as such products are intended to be used for further printing or writing." Tariff heading 4819 as appearing in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 4819 CARTONS, BOXES, CASES, BAGS AND OTHER PACKING CONTAINERS, OF PAPER, PAPERBOARD, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBRES; BOX FILES, LETTER TRAYS, AND SIMILAR ARTICLES, OF PAPER OR PAPERBOARD OF A KIND USED IN OFFICES, SHOPS OR TIIE LIKE. 4819 10 - Cartons, boxes and cases, of corrugated paper or paperboard: 4819 1010 - Boxes 4819 1090 - Other 4819 20 - Folding cartons, boxes and cases, of non-corrugated paper and paperboard 4819 2010 - Cartons, boxes, cases, intended for the packing of match sticks 4829 2020 - Boxes 4829 2090 - Other 4819 3000 - Sacks and bags, having a base of a width of 40 cm or more 4819 4000 - Other sacks....
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.... The articles of this group may be printed, e.g., with the name of the merchant, directions for use, illustrations. Thus, seed packets with pictures of the products and sowing directions, in addition to the name of the firm, or chocolate or cereal packets with pictures for the amusement of children remain classified in this heading. The articles of this heading may also have reinforcements or accessories of materials other than paper (e.g., textile backings, wooden supports, string handles, corners of metalor plastics). (B) Box files, letter trays and similar articles of a kind used in offices, shops or the like. This group covers containers, such as filing cabinets, box files, letter trays, storage boxes and similar articles of a rigid and durable type, and generally of better finish than the packing containers of group (A) above. They are used for the filing or storage of documents or stock of various kinds in offices, shops, warehouses, etc. These articles may have reinforcements or accessories of non-paper materials (e.g., hinges, handles, locking devices of metal, wood, plastics or textile material). They may also be provided with f....
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....ne, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendations of the Council, hereby notifies the rate of central tax of- (i) 2.5 per cent. in respect of goods specified in Schedule I; (ii) 9 per cent. in respect of goods specified in Schedule II; (iii) 20 per cent. in respect of goods specified in Schedule III; (iv) 1.5 per cent. in respect of goods specified in Schedule IV; (v) 0.125 per cent. in respect of goods specified in Schedule V; (vi) 0.75 per cent. in respect of goods specified in Schedule VI, and (vii) 14 per cent. in respect of goods specified in Schedule VII, appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on intra-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedules. Schedule I - 2.5 % S. No. Chapter/Heading/Sub-heading/ Tariff item ....
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....7. For the purpose, we find it obligatory to refer to the minutes of the 54th meeting of the GST Council held on 09.09.2024 under the Chairpersonship of the Hon'ble Union Finance Minister, in order to unearth the background which could have possibly culminated in the insertion of Entry No. 319 in Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025. During the course of the meeting, when the Joint Secretary, TRU-I stated that the Fitment Committee, in the 53rd GST Council meeting had recommended maintaining status quo regarding the rate on paper sacks which have always attracted a GST rate of 18%, the Hon'ble Minister from Maharashtra informed/stated that along with several other states, they have implemented a ban on plastic bags to promote eco-friendly and environmentally friendly alternatives and were encouraging the use of paper sacks and paper bags across various municipal corporations and urban areas; that in line with the recommendation made in the 53rd GST Council meeting to reduce the GST rate on corrugated boxes made of paperboard to 12%, the GST rate on paper sacks should also be reduced to 12%; that such a reduction would further the goal of increasing the use o....
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....able plastic bags are eco-friendly alternatives to conventional plastic that break down naturally through microorganisms into water, carbon dioxide, and biomass and unlike traditional plastics, they are manufactured from renewable plant-based materials or specialized polymers rather than fossil fuels, leaving no toxic or microplastic residues behind. 19. In view of the discussions in the paras supra, we find and conclude that the paper bags manufactured by the applicant, classifiable under Chapter Sub-heading No. 48194000 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), are aptly covered under Entry No. 319 of Schedule-I of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 and are liable to GST at the rate of 5%. Further, since we have already decided the applicable entry under which the applicant's products are covered, we do not find the need to discuss the other entry referred to by the applicant i.e. Entry No. 185 of Schedule-II of Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025. 20. In view of the above, we rule as under: - RULING Q.1. Whether the supply of 'Paper Bags' made out of paper or paper board, classifiable under ....