The Government of India has clarified the Goods and Services Tax (GST) rate applicable to fruit protection paper bags in response to an unstarred question in the Lok Sabha. According to the Ministry of Finance, fruit protection paper bags are classified under HS Code 4819 and attract an 18% GST rate. These bags are commonly used in agricultural practices to protect fruits from pests and environmental factors.
The Ministry noted that specific revenue data collected from the sale of fruit protection paper bags is unavailable. This is due to the lack of a distinct Harmonized System (HS) Code exclusively for these products, making it difficult to isolate GST collections from broader classifications under the same code.
In terms of policy, the Ministry stated that GST rates are determined based on recommendations made by the GST Council, a constitutional body responsible for making decisions related to GST. As of now, there are no recommendations or plans to reduce the GST rate on fruit protection paper bags.
This clarification underscores the government’s position on maintaining the current GST rate for fruit protection paper bags while addressing the limitations in revenue data tracking for this specific product category.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.954
TO BE ANSWERED ON MONDAY,DECEMBER 02, 2024 / AGRAHAYANA 11, 1946 (SAKA)
GST ON FRUIT PROTECTION PAPER BAGS
954. SHRI KESINENI SIVANATH:
Will the Minister of FINANCE be pleased to state:
- the rate of GST levied on fruit protection paper bags in the country;
- the amount of GST collected by the Government from fruit protection paper bags during the last five years, year-wise;
- whether the Government has any plans of reducing GST on fruit protection paper bags;
- if so, the details thereof; and
- if not, the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): Fruit protection paper bags will fall under HS Code 4819 and attract 18% GST
(b): Such data is not available, as fruit protection paper bags have no specific HS
(c): GST rates are prescribed on the recommendations of GST Council, which is a constitutional body. There is no such recommendation from the Council.
(d) & (e): Does not arise in view of reply to (c)
