AAR rules kraft paper bags attract 5% GST
In short
An AAR has ruled that kraft paper bags made from kraft paper and adhesive gum attract 5% GST. The ruling cites Entry 1 of Schedule I to Notification No. 9/2025-Central Tax (Rate).
It also says input tax credit can be claimed if Section 16 conditions are met.
What the reporting says
An AAR ruled that kraft paper bags made from kraft paper and adhesive gum are taxable at 5% GST under Entry 1 of Schedule I to Notification No. 9/2025-Central Tax (Rate), according to Taxscan. The ruling also says input tax credit is available if Section 16 conditions are met. The decision gives GST treatment for the product and links credit eligibility to the statute's requirements.
Why it matters
The AAR ruling classifies kraft paper bags made from kraft paper and adhesive gum under the 5% GST slab. It cites Entry 1 of Schedule I to Notification No. 9/2025-Central Tax (Rate) and says input tax credit is available if Section 16 conditions are satisfied. The decision affects GST treatment for manufacturers and sellers of such bags.