Rate of gst on non woven bags from 2017

The Goods and Services Tax (GST) rate for non-woven bags (specifically those made of polypropylene) has fluctuated since its implementation in 2017 due to evolving judicial interpretations and government notifications.

According to various rulings from the Advance Ruling Authority (AAR) and government notifications, the applicable rates are summarized below:

Key Points:

• Classification Disputes: There has been historical debate regarding whether these bags fall under HSN 3923 (Articles of plastics) or HSN 6305 (Sacks and bags, of a kind used for the packing of goods). The government eventually clarified through notifications (such as Notification 27/2019-Central Tax) that these items—whether woven or non-woven, of polyethylene or polypropylene—are generally taxed at 18% as of January 1, 2020.

• Judicial Clarity: While some early interpretations suggested lower rates (5% or 12%) based on specific textile-related HSN classifications, the consensus in recent years, reinforced by AAR rulings (e.g., In re Max Non Woven Pvt. Ltd), confirms the 18% rate for such products.

Summary: The GST rate on polypropylene non-woven bags is currently 18%. This has been the standard rate since January 1, 2020, following a brief period at 12% in late 2019 and an initial 18% rate from the inception of GST in July 2017.