In re Easy Flux Polymers Private Limited (GST AAR Rajasthan)
The applicant, Easy Flux Polymers Private Limited, Rajasthan, sought an advance ruling under Section 97(2) of the CGST/RGST Act, 2017 on two issues: (i) classification/HSN of its biodegradable/compostable bags, and (ii) applicability of Notification No. 9/2025–Central Tax (Rate) dated 17.09.2025 (effective from 22.09.2025), particularly Entry No. 319 of Schedule I prescribing 5% GST for “Paper Sacks/Bags and bio-degradable bags” under Chapters 39 and 48.
The applicant submitted that biodegradable bags, whether of plastic origin (Chapter 39) or paper origin (Chapter 48), are specifically covered under the said notification at 5% GST. It argued that the specific entry should prevail over general residual entries such as 3923 29 90, which otherwise attract a higher rate. The applicant stated that its products conform to ISO 17088 standards for compostable plastics and are supported by certification from CIPET (Centre for Skilling and Technical Support), Department of Chemicals and Petrochemicals, Government of India. It emphasized that the legislative intent of the notification is to promote biodegradable alternatives and reduce plastic pollution. Accordingly, it sought confirmation on classification and applicability of the concessional rate from 22.09.2025.
Read AAAR Order in this case: GST AAAR Upholds Ruling as Biodegradability Determination Lies With Environmental Authorities
