In re Pradeep Verma (GST AAR Rajasthan)
The ruling was delivered by the Authority for Advance Ruling Rajasthan on an application filed by a GST-registered manufacturer engaged in producing biodegradable and compostable carry bags in Rajasthan. The application was filed under the provisions of the CGST Act 2017 , and the RGST Act, 2017, seeking clarity on the classification of the products and the applicable GST rate.
The applicant operates a manufacturing facility in Bikaner and produces biodegradable and compostable carry bags made from certified compostable polymer materials, including PBAT (Polybutylene Adipate Terephthalate), along with PLA and/or starch-based compostable blends and approved additives and pigments. According to the applicant, the PBAT used is compostable-grade material permitted under compostable plastic standards and does not contain conventional plastics such as polyethylene, polypropylene, PVC, or oxo-degradable additives.
The applicant stated that its products are manufactured in compliance with IS/ISO 17088 standards for compostable plastics. The products are certified by the Central Pollution Control Board under the Plastic Waste Management Rules, 2016, and testing reports issued by CIPET confirm conformity with the prescribed composability standards. The manufacturing process involves procurement of compostable polymer raw materials, blending, film extrusion, conversion into bags, inspection, packing, and dispatch. The bags are intended to serve as eco-friendly alternatives to conventional plastic carry bags and are designed to decompose under composting conditions without leaving toxic or microplastic residue.
