Itc on packing bags

Sugar manufacturers can indeed claim Input Tax Credit (ITC) on the purchase of PP bags used for packaging their sugar. This is permissible even if the bag cost isn't itemised separately on the invoice, as it's considered part of the overall cost of the goods supplied. As long as the PP bags are used in the course or furtherance of your business, and not blocked under Section 17(5) of the CGST Act, you are eligible to claim this ITC.