Tote bag HSN Code

Understanding the HSN Code for Tote Bags

Tote bags have become ubiquitous – from fashion statements to practical grocery carriers. Their versatility means they can be made from a wide array of materials, and this material difference is key to understanding their HSN (Harmonized System of Nomenclature) code for GST (Goods and Services Tax) purposes in India. Unlike a single, universal code, the HSN for a tote bag will vary depending on its primary composition and sometimes even its intended use.

The HSN system is a global standard for classifying goods. When it comes to tote bags, we primarily look at two main chapters:

Tote Bags with a Material Focus (Chapter 42)

Many tote bags fall under Chapter 42: “Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut).” Within this chapter, the general heading is 4202, which covers a broad range of containers including “handbags, shopping-bags, wallets, purses…”

For tote bags, the specific sub-headings under 4202 are determined by the outer surface material:

• Outer surface of leather or composition leather: These would generally fall under HSN codes like 420211xx or 420231xx. While less common for the typical “tote bag” (which implies a simpler, often fabric construction), a high-end leather tote would be classified here. The data provided includes codes like 42023120 which covers “handbags” of leather.
• Outer surface of plastic sheeting or textile materials: This is where most common tote bags reside. The data shows codes like 42021290, 42021250, 42022290, 42023290, and 42023210. It’s important to note HSN 42022220, specifically described as “Hand-bags and shopping bags of cotton,” which is a very common category for tote bags.
  • GST Rate for Chapter 42 Tote Bags: Most of these HSN codes under Chapter 42 attract an 18% GST rate, effective from November 15, 2017. However, for HSN 42022220 (Hand-bags/shopping bags of cotton), the data indicates a 12% GST rate, also effective from November 15, 2017. This distinction is crucial for cotton tote bag manufacturers and sellers.

Tote Bags as “Made-Up Textile Articles” (Chapter 63)

Some simpler textile tote bags, particularly those primarily used for packaging goods or less elaborate designs, might fall under Chapter 63: “Other made up textile articles; sets; worn clothing and worn textile articles; rags.”

Specifically, HSN 6305 covers “Sacks And Bags, Of A Kind Used For The Packing Of Goods.” This includes:

• Cotton Sacks and Bags: HSN 63052000 refers to “Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Cotton.”
• Jute Sacks and Bags: HSNs like 63051020, 63051040, and 63051070 cover jute sacks and bags for packing.
• GST Rate for Chapter 63 Tote Bags: For most of these “sacks and bags for packing” under HSN 6305, the GST rate is 18%, effective from January 1, 2020. This applies to jute and cotton bags intended for packing goods.

Other Materials

The data also touches upon plastic bags (Chapter 39, HSN 3923) and paper bags (Chapter 48, HSN 48194000), which could also be designed as tote-style bags for specific purposes. These generally carry an 18% GST rate.