Packing Forwarding HSN Code

Understanding the “Packing & Forwarding” HSN Code Mystery

The terms “packing” and “forwarding” are intrinsically linked to the logistics and supply chain of almost every business. However, when we talk about “Packing & Forwarding HSN Code,” it’s crucial to understand that HSN codes primarily classify goods, not services. While “forwarding” is a service, “packing” can refer to both the materials used for packing (goods) and the service of packing.

The Harmonized System of Nomenclature (HSN) is a global standard for classifying traded products, crucial for consistent customs duties and taxation. For services, India uses the Service Accounting Code (SAC). The provided data primarily lists HSN codes for packing materials/containers and one specific “packing” service.

The “Packing” (Goods) HSN Codes

The majority of the data revolves around various types of packing materials and containers, which are goods. Their HSN codes depend on the material they are made from:

I. Textile Packing Materials (HSN Chapter 63)

This includes sacks and bags made from different textile fibers, specifically designed for packing goods.

• Sacks and Bags of Jute or Other Textile Bast Fibres (of Heading 5303):
  • 63051020: Jute Corn (Grains) Sacks.
  • 63051040: Jute Sacking Bags.
  • 63051070: Paper Laminated Hessian Jute.
• Sacks and Bags of Cotton:
  • 63052000: Of Cotton.
• Sacks and Bags of Man-Made Textile Materials:
  • 63053300: Of Polyethylene or Polypropylene Strip or the like (This one is notable for being 0% GST).
  • 63053900: Other (for other man-made textile materials).
• Most of these textile packing materials attract an 18% GST, with the exception of those made from polyethylene or polypropylene strip, which are Nil-rated (0% GST). The 18% GST for many of these became effective on January 1, 2020.

II. Plastic Packing Materials (HSN Chapter 39)

This covers a wide range of plastic articles used for conveying or packing goods, as well as closures.

• Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics:
  • 39231030: Boxes, Cases, Crates, and Similar Articles: Insulated Ware.
  • 39232100: Sacks And Bags (Including Cones) Of Polymers Of Ethylene.
  • 39233010: Carboys, Bottles, Flasks And Similar Articles: Insulated Ware.
  • 39233090: Carboys, Bottles, Flasks And Similar Articles: Other.
  • 39235010: Stoppers, Lids, Caps And Other Closures: Caps And Closures For Bottles.
  • 39235090: Stoppers, Lids, Caps And Other Closures: Other.
  • 39239020: Other: Aseptic Bags.
  • 39239090: Other: Other.
• All these plastic packing materials and closures consistently attract an 18% GST. The effective dates for many of these were January 1, 2020, or October 1, 2019.

III. Paper or Paperboard Packing Containers (HSN Chapter 48)

• 48194000: 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 The Like – Other Sacks.
• These paper-based containers attract an 18% GST, effective from July 1, 2017.

IV. Glass Packing Containers (HSN Chapter 70)

• 70101000: Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass, Of A Kind Used For The Conveyance Or Packing Of Goods; Preserving Jars Of Glass; Stoppers, Lids And Other Closures, Of Glass – Ampoules.
• 70102000: Stoppers, Lids And Other Closures, Of Glass.
• These glass containers and closures attract an 18% GST, effective from July 1, 2017.

V. Metal Packing Accessories (HSN Chapter 83)

• 83091000: Stoppers, Caps And Lids (Including Crown Corks, Screw Caps And Pouring Stoppers), Capsules For Bottles, Threaded Bungs, Bung Covers, Seals And Other Packing Accessories, Of Base Metal Crown Corks.
• These metal packing accessories attract an 18% GST, effective from July 1, 2017.

VI. Specific Packing Strip (HSN Chapter 40)

• 40082940: Plates, Sheets, Strip, Rods And Profile Shapes, Of Vulcanised Rubber Other Than Hard Rubber – Of Non-Cellular Rubber : Other : Tread Rubber And Tread Packing Strip For Resoling Or Repairing Or Retreading Rubber Tyres.
• This specific rubber “tread packing strip” attracts an 18% GST, effective from July 1, 2017.

Understanding “Packing” (Services) SAC Code

The term “Forwarding” and the act of “Packing” as a service are not classified under HSN but under Service Accounting Code (SAC).

• SAC 998541: “Parcel Packing And Gift Wrapping.”
• This specific service is Nil-rated for GST, but with crucial conditions. The data indicates that this Nil rate applies if:
  • The Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020.
  • Credit of input tax charged on goods and services used in supplying the service has not been taken (with an exception for input service in the same line of business).
  • The bill indicates that it is inclusive of charges for accommodation and transportation for a tour, and the amount charged is the gross amount including these.

This indicates that while the service of packing can be Nil-rated under specific circumstances (often related to events or bundled services), it is not a general exemption. For standard commercial packing services not meeting these specific criteria, GST would typically apply (often 18% for other miscellaneous services, though not explicitly stated for a general “packing service” here).