The HSN and GST rates for plastics and different articles about them are given in section 7 of chapter–39. When a trader trades a plastic or plastic article, they will have to use the HSN code for the plastic and plastic article in the invoice. They can also use the GST rate to identify the plastics and articles made of it. The plastic HSN code is different for different kinds of plastics.
The GST Council of India fixed the GST rate for plastics and different products made of plastic. The HSN code and GST rate of plastics and plastic articles fall under Chapter 39 of the HSN code. The materials which are or have been capable of being formed under the influence of external pressure (if necessary, with a plasticiser or solvent) by casting, moulding, rolling, extruding or another process into shapes which get retained on the external influence are considered as ‘plastics’.
What Is an HSN Code?
The list of HSN (Harmonized System of Nomenclature) codes is given by the World Customs Organization. These codes help classify the goods. They are similar in all countries under the WCO (World’s Customs Organization). The countries use 6-digit HSN codes for the goods, and some even use 8-digit codes to subclassify the goods and products.
Check Here To More About: https://services.gst.gov.in/services/searchhsnsac
The HSN classifies more than five thousand products, and this classification is accepted worldwide. It executes the international and domestic trade in the countries systematically. In the different countries of the world, more than twenty thousand goods are traded with the help of HSN codes. India is also a part of the WCO. Hence it also follows the HSN code system. 90% of world trade is done with the help of the revised HSN codes.
What Is a GST Tax Rate?
GST (Goods and Services Tax) is a kind of indirect tax in India. It has replaced many indirect taxes such as VAT, services tax, excise duty, etc. The GST Act was passed on 29 March 2017 and came into existence on 1st July 2017. This tax is imposed on the supply of products, services, and goods. It is a single domestic tax for the entire country.
Due to the vast number of products and services, the Goods and Services Tax (GST) differs for different things. Also, the services and products are classified in different tax slabs. Also, plastics and plastic articles are classified in different tax slabs on a different basis. The different GST tax slabs are NIL, 0.25%, 3%, 5%, 12%, 18%, and 28%, based on the type of services and products.
Why Are HSN Codes Essential for Filing GST Returns?
The GST returns are entirely automated; hence, it becomes hard for the dealers to upload the supplied goods’ descriptions. Therefore, automatically picking up the HSN codes from the dealer’s registration details helps reduce the efforts effectively. While migrating to GST or making a new registration, the dealer must be careful in choosing the correct HSN code. Also, the HSN codes are mandatory for all the dealers in India, based on their annual turnover.
What Is the Purpose of Using HSN Codes in India?
The HSN codes will help in making GST systematic and globally accepted. Accepting HSN codes in India will bring India to par with the other countries following this method after the introduction of GST. It will help minimise the cost associated with international trade and will lead to the harmonisation of trade procedures in the world. It is essential to mention the correct HSN codes during registration or enrollment under GST. It is an automated process; hence, one must not use incorrect HSN codes while trading.
HSN Code and GST Rates for Plastic and Plastic Products
The plastic HSN code is different for different plastic products. One can refer to the following table for information about the other plastic articles, their HSN codes, and GST rates. The materials between HSN code 3901 and 3914 are considered plastic and different plastic articles.
| Plastic Item | HSN Code | GST Rate |
| Linear low-density polyethene (LLDPE) | 3901 10 10 | 18% |
| Linear medium-density polythene (LMDPE) | 3901 90 10 | 18% |
| Polypropylene | 3902 10 00 | 18% |
| Poly iso butylene | 3902 20 00 | 18% |
| Polystyrene | 3903 11 00 | 18% |
| Moulding powder | 3903 19 10 | 18% |
| Polyvinyl chloride (PVC) resins | 3904 22 10 | 18% |
| Binders for pigments | 3904 10 10 | 18% |
| Polyvinyl acetate (PVA) | 3905 12 10 | 18% |
| PVA Resins | 3905 19 20 | 18% |
| Binders for ink | 3906 10 10 | 18% |
| Acrylic resins | 3906 90 10 | 18% |
| Polyacetals | 3907 20 10 | 18% |
| Epoxy resins | 3907 30 10 | 18% |
| Nylon moulding powder | 3908 90 10 | 18% |
| Nylon (primary forms) | 3908 90 20 | 18% |
| Urea formaldehyde moulding powder | 3909 10 10 | 18% |
| Melamine formaldehyde resins | 3909 20 10 | 18% |
| Silicone resins | 3910 00 10 | 18% |
| Silicone oil | 3910 00 20 | 18% |
| Coumarone-indene resins | 3911 10 10 | 18% |
| Polysulphones | 3911 90 10 | 18% |
| Cellulose acetate flakes | 3912 12 10 | 18% |
| Cellulose nitrate (moulding powders) | 3912 20 11 | 18% |
| Chlorinated rubber | 3913 90 11 | 18% |
| Dextran | 3913 90 30 | 18% |
| Ion-exchangers (primary forms) | 3914 00 00 | 18% |
| Ion-exchangers (condensation) | 3914 00 10 | 18% |
These were some HSN codes and GST rates for some significant types of plastics and derivates of plastics. Different materials are made using these plastics and are sold in the market according to the different GST rates.
What Are the Import Conditions for Plastics?
The following are a few essential conditions regarding plastic importing:
- Industrial trimmings and rejects of PVC flowing scrap are allowed to be imported.
- The PET bottle scrap is prohibited from import.
- The manufactured plastic products must meet the BIS specifications IS 3462, 1986 for flexible PVC flooring.
- The PVC scrap users must file an import return made during a year to the concerned PCC/PCB.
- Only actual users are allowed to import plastic and plastic materials.
- The Pollution Control Boards (PCBs) are supposed to monitor the use of PVC scrap imported by the unit.
These were some significant points to keep in mind while considering the import of plastic.
Conclusion:
Hence, the above information will help know the significant factors related to the HSN codes and GST rates for different plastics. One can get more details on the internet on the HSN codes of different materials. If an individual wish to gain deeper insights about taxes, HSN codes, and other legal terms, one can talk to an experienced tax firm.‘Vakilsearch’ is an Indian law, compliance, and taxation firm which can guide you in gaining more knowledge about the different rules and taxation processes. With a team of highly educated and experienced experts, they are India’s best legal firm. They have more than five lakh happy customers, who loved their services, and got the best outcomes. With minimal costs, one can solve one’s legal issue by visiting Vakilsearch’s website and booking a call in significantly less time.
