In India, the GST rate on plastic products has been standardized to 18%. Previously, there was a tiered tax system with rates of 12% and 28%, but this has now been simplified into a single, uniform rate for most plastic items. This change ensures consistent taxation across a wide range of products—from household containers to industrial components—helping to reduce confusion and ease compliance for businesses.
While companies still need to check the correct HSN Code (Harmonized System of Nomenclature) to confirm the exact rate for specific items, the majority of plastic products are now uniformly taxed at 18%. This standardisation simplifies inventory management and invoicing processes.
HSN code and GST rates for plastic and plastic products
The GST Council has streamlined the tax slabs by eliminating the higher 28% rate previously applied to certain plastic products. The updated GST rates are summarised in the table below:
HSN Code |
Description of Plastic Product |
Old GST Rate |
New GST Rate (Effective Sept 22, 2025) |
3917 |
Plastic tubes, pipes, and hoses |
18% |
18% |
3918 |
Floor coverings made of plastic |
28% |
18% |
3919 |
Self-adhesive plastic plates, sheets, film |
18% |
18% |
3921 |
Plastic sheets, films, plates, foils |
18% |
18% |
3922 |
Baths, shower-baths, sinks made of plastic |
18% |
18% |
3923 |
Plastic containers, bottles, etc. |
18% |
18% |
3926 |
Plastic articles not elsewhere classified |
28% |
18% |
Note: The previous 28% GST rate on HSN codes 3918 and 3926 has been abolished and replaced with the uniform 18% rate.
How is GST applicable to plastics?
The GST applicability on plastic goods is now governed by a simplified framework, introduced as part of GST Reform 2.0:
- Product Type: Finished plastic products and specialized components are now uniformly taxed at 18%, eliminating the previous distinction between basic and industrial items.
- HSN Code: Accurate classification using the correct HSN Code remains essential. The consolidation of GST rates for similar plastic goods has made this process more straightforward.
- Import/Export Regulations: Plastic products involved in international trade are subject to IGST (Integrated GST) or may qualify for exemptions under specific trade agreements. The standardised rates enhance predictability in these transactions.
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.
