AAR says greaseproof and glassine paper bags attract 5% GST
In short
The AAR ruled that unbranded kraft, greaseproof and glassine paper bags will face 5% GST. It said the bags are covered under HSN 4819 4000 and are not exempt from tax.
This matters for paper bag sellers and makers because it sets the tax rate they must charge. The ruling affects how these products are classified for GST.
What the reporting says
The Authority for Advance Rulings held that unbranded kraft, greaseproof and glassine paper bags are subject to 5% GST under HSN 4819 4000. The ruling says these bags are not exempt from GST and instead fall under the concessional rate. The order is relevant for sellers and manufacturers dealing in paper bags covered by this classification.
Why it matters
The Authority for Advance Rulings held that unbranded kraft, greaseproof and glassine paper bags attract 5% GST under HSN 4819 4000. The order clarifies the tax treatment for manufacturers and sellers of these paper bags and rules out exemption under GST. Businesses dealing in this category will need to apply the concessional rate as per the ruling.