HSN codes
HSN codes and GST rates for plastics and packaging
Plastic packaging and paper packaging sit in different chapters and do not share a rate. These are the codes a moulder, film plant or carton maker uses most.
In short
Plastic containers, caps and closures for packing usually sit under HSN 3923 and corrugated cartons under 4819, at different rates. SimpleERP stores the HSN and rate on each product and prints both on every line.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 3923 | Plastic containers, bottles, caps, closures and pouches | 18% | Articles for the conveyance or packing of goods |
| 3920 | Plastic film and sheet, not reinforced | 18% | BOPP, LDPE and PET film |
| 3921 | Other plastic film, sheet and foam | 18% | Laminated and cellular sheet |
| 3919 | Self-adhesive plastic tape and labels | 18% | BOPP tape and label stock |
| 3926 | Other articles of plastic | 18% | Moulded parts that are not packing articles |
| 3901 | Polyethylene granules (LDPE, LLDPE, HDPE) | 18% | Main input for film and moulding |
| 3902 | Polypropylene granules | 18% | Main input for caps, containers and raffia |
| 3907 | PET resin | 18% | Bottle-grade chips for preforms |
| 3904 | PVC resin and compound | 18% | Blister and shrink film |
| 3206 | Colour masterbatch | 18% | Pigment concentrate for colouring |
| 4819 | Cartons, boxes and cases of paper or paperboard | check | Corrugated and folding cartons; the rate differs from 3923 |
| 4804 | Kraft paper and paperboard | check | Main input for carton makers |
| 4808 | Corrugated paper and paperboard | check | Sheets and rolls for boxes |
| 4821 | Paper labels | check | Printed or plain |
| 6305 | Woven sacks and bags of PP or HDPE | check | Raffia bags for cement, grain and fertiliser |
| 3215 | Printing ink | 18% | Flexo and gravure printing on film and cartons |
| 3506 | Adhesives | 18% | Lamination and carton gluing |
| 8477 | Plastic moulding and extrusion machines | 18% | Capital goods |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a plastics and packaging unit use most?
Plastics live in chapter 39, which runs from raw polymer to finished article: polyethylene granules in 3901, polypropylene in 3902, film and sheet in 3920 and 3921, and packing articles such as containers, caps, jars and pouches in 3923. Paper packaging sits in chapter 48, with cartons and boxes in 4819 and labels in 4821.
Inputs and outputs differ because a moulder buys granules under 3901 or 3902 and sells containers under 3923, while a carton maker buys kraft paper under 4804 and sells boxes under 4819. Plastic goods have mostly sat at 18%, while paper packaging rates have moved more than once, so a unit that makes both needs a rate per product.
How to check a rate before billing
The common mistake in packaging is billing a paper carton at the plastic rate, or a sack at the film rate. Confirm these before you bill.
- Material decides the chapter: a plastic box is 3923, a paper box is 4819, a woven sack is 6305 even though it is made of PP.
- Packing article or not: a container for packing goods is 3923, while a moulded part for a machine is usually 3926.
- Paper rates have moved: carton, kraft and label rates were revised in recent years, so confirm the current rate for each paper product.
- Search the code in the CBIC tariff or the GST portal's HSN search, and ask your CA when a product could fall under two headings.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A packaging order can mix jars, caps, cartons and tape. SimpleERP keeps each line's code and rate and totals them by code.
- HSN on every product and every invoice line, so 3923 for the jars and 4819 for the outer cartons print on the same bill at their own rates.
- Four or six digits by turnover, as notified: currently four digits on B2B invoices up to ₹5 crore of aggregate turnover and six above it.
- The HSN summary report groups sales by code with taxable value, CGST, SGST and IGST, and exports to CSV for GSTR-1 table 12. See HSN codes on invoices and GSTR-1 table 12.
- Units stay with the product: pieces, kilograms or thousands, so a bill of caps in thousands still reports correctly by code.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for plastics and packaging
Granules, paper, ink and adhesive arrive on supplier bills, and the codes on those bills are what your GSTR-2B lists.
- Granules come in under 3901, 3902 and 3907; kraft paper under 4804; ink and adhesive under 3215 and 3506.
- Same rate in and out for most plastic goods means the credit on granules is used up against sales.
- Paper packaging can differ: if your carton rate is below the rate on your inputs, credit can build up, so review it with your CA.
- Credit follows GSTR-2B: the purchase register lists every bill with GSTIN, HSN and tax and exports to CSV so your CA can match it against GSTR-2B.
FAQ
Questions, answered
How many digits of HSN must a packaging unit print?
As notified, a business with aggregate turnover up to ₹5 crore in the previous year shows at least four digits on B2B invoices, such as 3923. Above ₹5 crore you show six digits on every invoice, such as 392330 for bottles or 392350 for caps. More digits are always allowed.
What is the GST rate on plastic packaging?
Plastic containers, caps, closures and pouches under HSN 3923 have usually been taxed at 18%. Paper cartons under 4819 and woven sacks under 6305 carry their own rates, which have been revised, so set each product's rate separately. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
Is ITC available on PP granules for a moulder?
Generally yes. Granules bought to make containers or caps for sale qualify for input tax credit when the supplier's bill appears in GSTR-2B and the other conditions are met. With granules and finished plastic goods usually at the same rate, the credit is normally used up.
Where do I set HSN in SimpleERP?
Open the product, type the HSN code and pick the GST rate. Every invoice line for that product then carries both, and the HSN summary report groups sales by code. For many sizes at once, fill the HSN column in the product CSV import.
Related
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