Kraft, Greaseproof and Glassine Paper Bags Attract 5% GST Under Entry 319: AAR Tamil Nadu

In two rulings, the Tamil Nadu Authority for Advance Ruling held that unbranded paper bags without handles fall under HSN 4819 4000 and attract 5% GST, not 18%, with ITC available.

The Tamil Nadu Authority for Advance Ruling has held that paper bags made of kraft, greaseproof or glassine paper with adhesive glue are classifiable under HSN 4819 4000 and attract 5% GST under S.No. 319 of Schedule I to Notification No. 9/2025-CT (R) dated 17 Sep 2025, rather than 18% under S.No. 185 of Schedule II. The Bench of R.V. Pradhamesh Bhanu, Member (CGST), and B. Suseel Kumar, Member (SGST), gave the rulings on two applications [In Re: Priya Paper Products, 2026-juristway.com-3228-AAR(Tamilnadu)-GST; In Re: Sri Kumaran Paper Bags, 2026-juristway.com-3229-AAR(Tamilnadu)-GST].

In both cases, the Bench held that the bags were not exempt, since HSN 4819 4000 has no entry in Notification No. 10/2025-CT (R). Finding two competing entries in Notification No. 9/2025-CT (R), it read S.No. 319 as covering paper sacks and bags, reflecting the push towards eco-friendly alternatives to plastic. ITC was held available subject to the conditions of Section 16.

Priya Paper Products. The applicant, which makes plain or printed, uncoated, unbranded kraft paper bags without handles for pharmacies and grocers, had classified them under 4819 3000 at 18%. The Bench found that the bags did not have a base width of 40 cm or more, so they fall under 4819 4000 as other sacks and bags, and are squarely covered by S.No. 319.

Sri Kumaran Paper Bags. The applicant makes kraft, greaseproof and glassine paper bags, the latter two for sweet shops. A report on the jurisdictional officer’s physical verification confirmed that no plastic, lamination or synthetic lining was used, and the applicant filed a biodegradability test report after the hearing. The Bench ruled that all three types are paper bags under S.No. 319 at 5%.

In both rulings, the bags are not exempt, attract GST at 5% (2.5% CGST and 2.5% SGST), and allow ITC on inputs and input services subject to Section 16. Under Section 103(1), the rulings bind only the applicants and the officers concerned with them.

2026-juristway.com-3228-AAR(Tamilnadu)-GST | 2026-juristway.com-3229-AAR(Tamilnadu)-GST