PP Packing Boxes Classifiable Under HSN 39231090 as They Are Plastic Packing Articles: West Bengal AAR

In re Jai Hind Plastic (GST AAR West Bengal)

The Authority for Advance Ruling, West Bengal, considered an application filed by a manufacturer engaged in the manufacture and supply of PP packing boxes made of plastic. The applicant, registered under GST in West Bengal, stated that the products were presently being classified under HSN Code 392390 under Chapter 3923 relating to “articles for the conveyance or packing of goods of plastics, stoppers, lids, caps and other closures of plastics.” The applicant was charging GST at 18 percent, comprising 9 percent CGST and 9 percent SGST, and sought clarification regarding the correct HSN classification of the product “PP Packing Box.” The application was admitted as it fell within the scope of Section 97(2)(a) of the GST Act, and the Revenue raised no objection to its admission.

The applicant submitted that PP Packing Boxes are manufactured using plastic granules as the principal raw material through semi-automatic machines installed at its factory in Kolkata. The applicant stated that the finished products are supplied in the course of business and are presently classified under HSN Code 392390 in terms of Chapter 39 of the Customs Tariff. According to the applicant, the goods fall under Serial No. 124 of Schedule II of Notification No. 01/2017 – Central Tax (Rate), which covers “articles for conveyance or packing of goods of plastics, stoppers, lids, caps and other closures of plastics.” GST at the rate of 18 percent was being regularly charged and discharged on the supply of such goods.

The applicant clarified that there was no dispute regarding the applicable GST rate and that the sole purpose of filing the application was to obtain confirmation of the exact HSN Code applicable to PP Packing Boxes for proper compliance under GST law. Photographs and specimen invoices of the products were also submitted before the Authority.

The Revenue did not provide any submissions on the merits of the issue raised by the applicant.

The Authority examined the records, submissions, invoices, and product images furnished by the applicant. It observed that the applicant manufactures PP Packing Boxes from plastic granules using semi-automatic machines installed at its factory premises. The Authority further observed that the products are sold sometimes with stoppers, lids, caps, and closures and sometimes without them.

The Authority noted that the applicant had been using HSN Code 39239090 while charging GST at 9 percent CGST and 9 percent SGST for intra-state supplies and 18 percent IGST for inter-state supplies. The applicant believed that the products were covered under HSN 392390 and fell under Serial No. 124 of Schedule II of Notification No. 01/2017 – Central Tax (Rate), as amended by Notification No. 09/2025 – Central Tax (Rate).

The Authority then examined the relevant entries under Chapter 39 of the Customs Tariff Act, 1975. It referred to tariff heading 3923 covering “articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.” The Authority also referred to Chapter Note 1 of Chapter 39, which defines “plastics” as materials capable of being formed under external influence such as heat and pressure into shapes retained after removal of such influence.

Based on the manufacturing process described by the applicant, the Authority concluded that the products clearly qualified under Chapter 39. It observed that polymers of propylene are commonly used in the manufacture of heat-resistant and chemical-resistant containers and that polymers of propylene are covered under tariff heading 3902.

The Authority then proceeded to determine the exact HSN classification of the products. It held that since the products are articles for packing of goods made of plastic, they fall under tariff heading 3923. The Authority further observed that the products are in the nature of boxes, cases, crates, and similar articles and would therefore fall under sub-heading 392310.

After examining the tariff items under sub-heading 392310, the Authority found that the products would not fall under tariff items 39231010, 39231020, 39231030, or 39231040. Consequently, the PP Packing Boxes manufactured by the applicant were held classifiable under tariff item 39231090 as “Other.”

The Authority further held that the stoppers, lids, caps, and closures manufactured along with the boxes would fall under sub-heading 392350 and specifically under tariff item 39235090 as “Other.”

The Authority also observed that sub-heading 3923 is included in Schedule II of Notification No. 01/2017 – Central Tax (Rate), attracting GST at the rate of 9 percent CGST and 9 percent SGST.

Accordingly, the Authority for Advance Ruling ruled that PP Packing Boxes manufactured by the applicant are classifiable under tariff item 39231090, while the lids, caps, and covers of the boxes are classifiable under tariff item 39235090.

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, WEST BENGAL

1.1 At the outset, we would like to make it clear that the provisions of the Central Goods And Services Tax Act, 2017 (the CGST Act, for short) and the  West Bengal Goods and Services Tax Act, 2017, (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression “GST Act” would mean the CGST Act and the WBGST Act both.

1.2 The applicant is engaged in the manufacture and supply of PP packing boxes made of plastic and is duly registered under the Goods and Services Tax law in the State of West Bengal. The said products are currently being classified under HSN Code 392390 falling under Chapter 3923 covering “articles for the conveyance or packing of goods of plastics, stoppers, lids, caps and other closures of plastics”. The applicant has been charging GST at the rate of 18 percent (CGST 9 percent and SGST 9 percent) in terms of the applicable rate notification. In this background, the applicant has approached this Authority seeking clarification regarding the correct HSN classification of PP packing boxes and has submitted photographs of the product for reference.

1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling in respect of following question:

a) HSN code of the product named PP Packing Box?

1.4 The aforesaid question on which the advance ruling is sought for is found to be covered under clause (a) of sub-section (2) of section 97 of the GST Act.

1.5 The applicant states that the question raised in the application has neither been decided by nor is pending before any authority under any provision of the GST Act.

1.6 The officer concerned from the Revenue has raised no objection to the admission of the application.

1.7 The application is, therefore, admitted.

2. Submission of the Applicant

2.1 The applicant submits that it is engaged in the manufacture of PP Packing Boxes and is duly registered under the Goods and Services Tax law in the State of West Bengal. The applicant carries on manufacturing activities on a regular basis and supplies the said products in the course of business.

2.2 The applicant submits that the PP Packing Boxes are manufactured by using plastic granules as the principal raw material. The manufacturing process is carried out with the help of semi-automatic machines installed at the applicant’s factory located at 284, Maharaja Nanda Kumar Road, Alambazar, Kolkata – 700035. The plastic granules are processed through the said machinery to manufacture the finished product known as PP Packing Box.

2.3 The applicant further submits that the said product is presently being classified under HSN Code 392390 in terms of Chapter 39 of the Customs Tariff. As per the applicant’s understanding, the said goods fall under Sl. No. 124 of Chapter 3923 covering “articles for conveyance or packing of goods of plastics, stoppers, lids, caps and other closures of plastics”. The applicant states that GST at the rate of 18 percent, comprising CGST at 9 percent and SGST at 9 percent under Schedule II, is being charged on the supply of the said goods.

2.4 The applicant submits that there is presently no dispute regarding the rate of tax being charged on the supply of the said goods, and the applicant has been regularly charging and discharging GST at the applicable rate of 18 percent.

2.5 The applicant submits that the purpose of filing the present application is to obtain clarification regarding the exact HSN Code applicable to the product namely PP Packing Box. The applicant has therefore approached this Authority seeking an advance ruling for determination of the correct HSN classification of the said product.

2.6 The applicant further submits that the product PP Packing Box appears to fall under HSN Code 392390 as per its understanding based on the classification provided in Chapter 39 of the Customs Tariff. However, the applicant seeks confirmation of the exact HSN Code from this Hon’ble Authority for the sake of clarity and proper compliance under the GST law.

2.7 The applicant has also submitted photographs of the product for reference and record in order to assist the Authority in determining the correct classification of the goods.

3. Submission of the Revenue

3.1 The concerned officer from the revenue has not expressed any view on the merit of the issue raised by the applicant.

4. Observations & Findings of the Authority

4.1 We have gone through the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing. The Revenue has not given any submission in this regard.

4.2 According to the facts narrated by the applicant, he is a manufacturer of PP packing box. In the course of manufacturing of PP packing box the applicant uses plastic granules and with the help of semi-automatic machines duly installed in the factory located at 284 Maharaja Nanda Kumar Road, Alambazar, Kolkata – 700035 the applicant manufactures the said products. The manufactured goods are sometimes sold along with the respective stoppers, lids, caps and other closures of the packing boxes and sometimes without them.

4.3 In this context the applicant wants to know the exact HSN code of PP packing box. The applicant has placed before us some specimen invoices in respect of supply of the referred goods and some images of the same for our consideration. From the furnished invoices it appears that the goods under question is sold under the description of ^„P P Packing Box‟ of various categories. The followings are the images of the products supplied by the applicant as placed before us:

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4.4 According to the furnished invoices, the applicant is using HSN code 39239090 in respect of the goods supplied by him and charging tax @ 9% CGST + 9% SGST in respect of intra-state supplies and @ 18% IGST in respect of inter-state supplies.

The applicant believes that the products under question are covered under HSN 392390 and as such they fall under serial no. 124 of Schedule II of  Notification No. 1/2017 Central Tax (Rate) Dated 28.06.2017as amended by 09/2025 – Central Tax (Rate) Dated 19.09.2025.

The description of the above noted serial number is ^„Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.‟

4.5 Before going into the discussion, we should look at the relevant entries of the Customs Tariff Act, 1975. The relevant portion is reproduced as under:

4.6 Clearly the above entries are parts of Chapter 39 of Section VII of the Customs Tariff Act, 1975 which reads ^„Plastics and articles thereof; Rubber and articles thereof’. The Chapter note 1 stipulates as under:

1. Throughout this Schedule, the expression ―plastics‖ means those materials of headings
3901 to 3914 which are or have been capable, either at the moment of polymerisation or at some subsequent stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticiser) by moulding, casting, extruding, rolling or other process into shapes which are retained on the removal of the external influence.

The production process of the goods referred to in the application is the same as mentioned in the chapter note ibid. So the goods under question will qualify for Chapter 39. The applicant’s manufactured product is Poly Propylene Packing Box. Polymers of propylene are widely used for manufacture of heat- resistant and chemical-resistant containers, including food-grade containers and the polymers of propylene find entry in tariff heading no. 3902 that is included in the above referred chapter note.

4.7 Once we are sure that the products under question will come under Chapter 39, now we will discuss the exact HSN code for the said product specified as Poly Propylene Packing Box. As we see tariff heading 3923 covers ^„Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.’ The referred product is definitely an article for packing of goods and it is made of plastics. The lids, caps and covers of the containers are also made of plastics.

Being of the nature of boxes, cases, crates and similar articles, the containers manufactured by the applicant will come under sub heading 392310. If we look at the entries under the said sub heading, it is evident that the manufactured product will not come under tariff items 39231010, 39231020, 39231030 and 39231040. The said product will qualify for tariff item no. 39231090. Again stoppers, lids, caps and closures will come under sub heading 392350 and will be covered by tariff item no. 39235090.

4.8 If we now look at the schedules of Notification No. 01/2017 – Central Tax (Rate) Dated 28.06.2017 as amended by 09/2025 – Central Tax (Rate) Dated 19.09.2025, we find that sub heading 3923 is included in Schedule II vide serial no. 124 and the description is the same as we find in the Customs Tariff Act, 1975 and as such all products under this sub heading are to be taxed @ 9% CGST + 9% SGST.

In view of the foregoing discussion, we rule as under:

RULING  

PP packing box manufactured by the applicant is covered by tariff item 39231090 and the lids, caps and covers of the boxes are covered by tariff item 39235090.