GST on Plastic Products in India — 18% on Almost Everything

Plastic carry bags are taxed at 18% GST under HSN 3923 (articles for the conveyance or packing of goods, of plastics). This applies to both thin single-use and thicker reusable plastic carry bags. The single-use plastic ban does not create a GST exemption — 18% still applies to permitted plastic bags.

PVC pipes and fittings are taxed at 18% GST under HSN 3917 (tubes, pipes and hoses of plastics). The same 18% applies to CPVC, UPVC, PE/HDPE and PP pipes and to fittings such as elbows, tees, reducers and conduit. Businesses can generally claim Input Tax Credit on the GST paid.

Plastic products fall under Chapter 39 of the HSN. Common codes are 3901–3914 for raw polymers, 3917 for pipes and hoses, 3920–3923 for films, sheets and packaging, 3923 for carry bags, bottles and containers, 3924 for household articles and 3926 for other plastic articles. Confirm the exact eight-digit HSN before invoicing.

Plastic bottles and containers — including PET bottles and PP containers — are taxed at 18% GST under HSN 3923. There is no lower rate for empty plastic bottles or food-grade containers; the standard Chapter 39 rate of 18% applies.

Plastic furniture such as moulded chairs, tables and stools is taxed at 18% GST (classified under HSN 3926 or 9401 depending on the article). This is the same 18% that applies to most plastic goods under Chapter 39.

Plastic household and kitchen articles — buckets, mugs, tubs, storage boxes and similar items under HSN 3924 — are taxed at 18% GST. There is no concessional household rate for these plastic goods.

For most plastic products, no. The GST 2.0 rationalisation effective 22 September 2025 kept Chapter 39 plastic goods — bags, pipes, packaging, furniture — at 18%. The notable change was for toys: non-electronic plastic toys came down to 5%, while electronic/battery-operated toys stayed at 18%.

Non-electronic plastic toys are taxed at 5% GST under HSN 9503 following the GST 2.0 reform (down from 12% earlier). Electronic or battery-operated toys continue at 18%. Because classification decides the rate, keep documentation showing whether a toy is electronic.

No. The single-use plastic ban under the Ministry of Environment notifications (effective July 2022) restricts the manufacture, stocking and sale of specified items but does not create any GST exemption. Where a permitted plastic item is sold, GST at 18% still applies. Alternatives like paper or bamboo are taxed under their own HSN codes.

There is no automatic concessional GST rate for products merely labelled "biodegradable" — plastic articles under Chapter 39 are generally taxed at 18% as per the current GST rate schedule. Non-plastic alternatives (paper, bamboo, areca leaf) follow their own HSN classifications, which may differ. Confirm the position for a specific certified product with a GST expert and the official portal.

Yes. A GST-registered business can claim Input Tax Credit on plastic packaging — films, pouches, bubble wrap, cartons, tape and containers — used to make taxable supplies, provided it holds a valid tax invoice, the credit reflects in GSTR-2B and it is not blocked under Section 17(5). Composition dealers and packaging used for personal or exempt supplies cannot claim ITC.

Plastic packaging materials — films, sheets, pouches, bubble wrap and containers under HSN 3920–3923 — are taxed at 18% GST. For a registered buyer this 18% is usually recoverable as Input Tax Credit, so it becomes a pass-through cost rather than an absolute expense.

Yes. Plastic raw materials in primary forms — PE, PP, PVC, PS and PET granules, powder and pellets under HSN 3901–3914 — are taxed at 18% GST. Manufacturers using these inputs can claim ITC against the GST on their finished output.

GST registration is mandatory once your aggregate turnover crosses ₹40 lakh for goods in most states (₹20 lakh in special-category states), and earlier if you make inter-state supplies or sell through an e-commerce operator. Selling plastic goods on marketplaces generally requires registration regardless of turnover.