Plastic bag HSN Code

Understanding the Plastic Bag HSN Code

Plastic bags are an omnipresent part of our daily lives, used for everything from grocery shopping to packaging industrial goods. While their environmental impact is a growing concern, their widespread use necessitates a clear understanding of their HSN (Harmonized System of Nomenclature) classification and associated GST (Goods and Services Tax) rates in India. This can be more complex than it appears, as the term “plastic bag” encompasses a variety of products with different applications.

The HSN Code for Plastic Bags

The primary HSN classification for plastic bags generally falls under Chapter 39: “Plastics and articles thereof.” This chapter is dedicated to plastic materials in various forms and articles manufactured from them.

Specifically, for bags made of plastic and used for the conveyance or packing of goods, the most relevant HSN heading is 3923: “Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics.”

Within HSN 3923, plastic bags are further categorized based on the type of plastic:

• 39232100: This code specifically covers “Sacks And Bags (Including Cones)Of Polymers Of Ethylene.” This includes common polyethylene (PE) bags, often used as carry bags or for packaging.
• 392329: This heading covers “Sacks And Bags (Including Cones)Of Other Plastics (Excluding Those Of Polymers Of Ethylene).” This would include bags made from other plastics like PVC or polypropylene.
  • 39232910: “SACKS AND BAGS (INCL CONES)OF OTHR PLASTICS OF POLY (VINYL CHLORIDE)”.
  • 39232990: “SACK AND BAG (INCL CONES)OF OTHR PLASTIC NES” (Not Elsewhere Specified), which is a general category for bags of other plastics.
• 39239090: This “Other” category under HSN 3923 covers various other articles for conveyance or packaging of goods, of plastics, which might include certain types of plastic bags not specifically enumerated elsewhere.

It’s important to differentiate general-purpose plastic bags from other items that might use plastic but serve different primary functions:

• Bags with outer surface of plastic or textile materials (Chapter 42): These are typically travel goods, handbags, or similar containers (e.g., 42021218, 42021290). While they might contain plastic, their classification depends on their primary use as a container or travel item.
• Plastic-coated or paper-cum-polythene lined jute bags (63051060): These are textile bags with plastic elements, primarily classified under textile articles.
• Other articles of plastics (3926): This is a broad residual category for plastic articles not covered elsewhere, but specific plastic bags generally fall under 3923.

Therefore, for common plastic bags used for packing or carrying goods, HSN 3923 is the most appropriate chapter and heading.

GST Rate for Plastic Bags

Based on the provided data and common GST classifications for plastic articles of Chapter 39, plastic bags generally attract an 18% GST rate. This rate is applicable to the various sub-headings under HSN 3923, including those for bags of polymers of ethylene and other plastics.

It’s important to note that while some older entries in tax schedules might show 12% for specific plastic items, the general and current rate for “Articles For The Conveyance Or Packing Of Goods, Of Plastics” under HSN 3923 is widely applied at 18%. The effective date for many of these classifications is October 1, 2019, or January 1, 2020, following rate revisions. There is no additional cess mentioned for plastic bags in the provided data.

Businesses must stay updated on any changes in GST rates and HSN classifications, particularly for plastic products, given evolving environmental regulations and policy changes.