Carry bag HSN Code

Understanding the Carry Bag HSN Code

Understanding the Harmonized System of Nomenclature (HSN) codes and their associated Goods and Services Tax (GST) rates is crucial for businesses dealing with “carry bags” in India. The term “carry bag” can encompass a wide variety of materials and uses, and each type is categorized under specific HSN codes, leading to different GST implications. This blog will help you demystify the HSN codes for various carry bags and their applicable GST rates.

The HSN Code for Carry Bags

The HSN code is an internationally recognized six-digit identification code for goods. India, being a member of the World Customs Organization (WCO), uses these codes for systematic classification, often adding two more digits for greater precision in domestic taxation under GST.

When it comes to carry bags, their classification primarily depends on the material they are made from and their intended use. Let’s explore some common types:

• Textile Carry Bags: Bags made from textile materials like jute or cotton fall under Chapter 63 of the HSN code.
  • Sacks and bags used for packing goods, made of Jute Sacking, generally come under HSN 63051040 with an 18% GST rate.
  • Jute Corn (Grains) Sacks are classified under HSN 63051020 also at 18% GST.
  • Bags made of cotton, used for packing goods, use HSN 63052000 with an 18% GST rate.
  • Paper Laminated Hessian Jute bags are categorized under HSN 63051070, attracting 18% GST.
• Leather and Similar Material Carry Bags: Bags made from leather, composition leather, or other similar materials often fall under Chapter 42. This category includes various travel and utility bags.
  • Trunks, suit-cases, travelling-bags, handbags, shopping-bags, and similar containers generally fall under HSN 4202. The specific sub-codes vary based on the outer surface material and the specific type of bag. For instance:
    • Handbags and shopping bags of artificial plastic material often fall under HSN 42022210 with 18% GST.
    • Handbags and shopping bags of cotton fall under HSN 42022220 with 12% or 18% GST, depending on specific classification updates.
    • Handbags and shopping bags of jute fall under HSN 42022230 with 12% or 18% GST, again subject to specific classification updates.
    • Vanity bags can be found under HSN 42022240 with 18% GST.
    • Other handbags made of materials excluding wicker-work or basket-work can be found under HSN 42022910 with 18% GST.
    • Many other types of travelling bags, insulated food or beverage bags, toilet bags, etc., also fall under various sub-headings of HSN 4202 with generally an 18% GST rate. Note that some specific items like “Hand-bags and shopping bags, of cotton” under HSN 42022220 previously had a 12% rate, but some sources now indicate 18%. It is advisable to confirm the latest rates.
• Plastic Carry Bags: Bags made from plastics are typically classified under Chapter 39.
  • Sacks and bags (including cones) of polymers of ethylene are categorized under HSN 39232100 with an 18% GST rate.
  • Generally, articles for the conveyance or packing of goods, of plastics, fall under HSN 3923 with an 18% GST rate.
• Paper Carry Bags: Bags made from paper or paperboard are found in Chapter 48.
  • Other sacks and bags (including cones) of paper, paperboard, cellulose wadding or webs of cellulose fibres fall under HSN 48194000 with an 18% GST rate.

Essential Reasons to Understand HSN Codes

• Ensuring GST Compliance: Accurately applying HSN codes helps businesses levy and collect the correct GST, avoiding penalties.
• Streamlining Business Operations: With precise classification, businesses can manage their inventory, invoicing, and returns more efficiently.
• Facilitating International Trade: The global standard of HSN codes simplifies import and export procedures, fostering smoother international transactions.