The GST rate for plastic products in India varies depending on the type and classification of the item. As per the GST structure, plastic items can attract GST rates of 12%, 18%, or 28%, depending on their use and category. For instance, basic plastic items like household containers might fall under 12%, while industrial plastic parts or products with more significant value addition may be taxed at 18% or 28%. Check your business loan eligibility if you're planning to scale operations or upgrade inventory based on GST compliance needs.
To determine the exact rate applicable to a specific product, businesses must refer to the correct HSN Code (Harmonized System of Nomenclature), which classifies goods systematically under GST.
HSN code and GST rates for plastic and plastic products
The table below provides a general overview of HSN code classifications along with corresponding GST rates for various plastic products:
| HSN code | Description of plastic product | Applicable GST rate |
|---|---|---|
| 3921 | Plastic sheets, films, plates, foils | 18% |
| 3923 | Plastic containers, bottles, etc. | 18% |
| 3926 | Plastic articles not elsewhere classified | 28% |
| 3917 | Plastic tubes, pipes, and hoses | 18% |
| 3922 | Baths, shower-baths, sinks made of plastic | 18% |
| 3919 | Self-adhesive plastic plates, sheets, film | 18% |
| 3918 | Floor coverings made of plastic | 28% |
Note: GST rates are subject to change based on government notifications. Refer to official GST portals or financial advisors for the latest updates.
How is GST applicable to plastics?
GST is applicable to plastic goods based on the following factors:
- Nature of the product: Raw plastic materials may attract lower rates, while finished or specialized plastic items may be taxed higher.
- End use: Industrial vs. consumer use can affect the GST bracket.
- HSN code: Proper classification under the correct HSN Code ensures accurate taxation.
- Import/Export rules: Plastics involved in international trade are subject to IGST or exemptions under specific trade agreements.
Check your pre-approved business loan offer if you're managing bulk orders or planning to expand your product line to include new GST categories. Businesses dealing in plastic products must ensure proper classification and documentation to remain GST-compliant.
How is GST calculated on plastic and plastic products?
GST on plastic items is calculated using the product’s invoice value and the applicable tax rate as per the HSN classification. The formula for GST calculation is:
GST Amount = (Product value × GST rate)/100
For example, if a plastic container is priced at Rs. 1,000 and falls under the 18% GST category, the GST payable would be:
Rs. 1,000 × 18% = Rs. 180
To ease this process, you can use a reliable GST calculator to determine exact amounts quickly and accurately.
Conclusion
Understanding the applicable GST rate for plastic products is crucial for businesses involved in manufacturing, trading, or distributing plastic goods. Accurate classification under the HSN code helps avoid compliance issues and penalties. Whether you're importing plastic materials or selling finished goods domestically, staying updated on GST norms ensures smooth operations.
If you're looking to streamline your finances or expand operations in this domain, consider applying for a business loan to support your working capital and growth plans.
