Gst new rate wef 22.09.2025

GST Rate Details

• Corrugated carton boxes / paperboard cartons: 5% GST.

• Wooden pallets (including plywood pallets): 5% GST.

• The rate change is part of the GST Council’s move as of September 22, 2025, which shifted packaging materials like boxes and pallets from higher slabs (12% and 18%) to the new reduced 5% category.

• Basic household and industrial packaging materials, including those combining paper and wood, are now taxed at this lower slab.

For the September 22, 2025 GST rate changes, the transition rule is straightforward:

Time of supply determines the rate. The relevant date is invoice date (for most supplies), not delivery date.
- Invoice dated before September 22: old rate applies
- Invoice dated on or after September 22: new rate applies

For corrugated carton boxes and wooden pallets specifically: rate reduced from 18% to 5% w.e.f September 22. If you have purchase orders at the old 18% rate, advise your supplier to raise invoices only after September 22 to take advantage of the lower rate.

For ongoing contracts: check whether your contracts have a GST variation clause. If yes, pass on the benefit. If not, the rate reduction goes to the supplier as margin since the pre-agreed price was inclusive of the old rate.

For credit notes on pre-September returns: if a buyer paid 18% on an invoice before September 22, and goods were returned after September 22, the credit note should ideally still carry 18% to match the original invoice. The GST portal links credit notes to original invoices.

This [GST 2.0 simplified rate guide](https://taxgarden.in/blog/gst-2-simplified-rate-structure-slabs-2026-guide) has the full rate table with the GST 2.0 changes by product category.