Compostability Certification Not Enough; 5% GST Applies Only If Bags Are Biodegradable: Rajasthan AAR

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 ori...