GST rate on Cartons, Boxes and Cases of Paper and Paperboard
Cartons, boxes, cases,
bags and other packing containers of paper or paperboard fall under HSN Code 4819, which reads as under:
TABLE
|
S. No.
|
Description of
goods
|
HSN Code
|
|
1
|
Cartons,
boxes and cases, of corrugated paper or paperboard
|
|
|
2
|
Folding
cartons, boxes and cases, of non-corrugated paper or paperboard
|
4819
20
|
It is worth mentioning that prior
to 01.07.2017, Central Excise duty on goods at S. No. 1 and 2 above were
chargeable to Central Excise duty @ 12.5%. However, in terms of Notification
No. 12/2012-CE dated 17.03.2012, effective rate of duty on “Cartons, boxes and cases, of
corrugated paper or paperboard whether
or not pasted with duplex sheets on the outer surface”
was 6% subject to the condition that “The exemption shall be
applicable to units manufacturing cartons, boxes or cases, as the case may be,
starting from the stage of kraft paper, corrugated paper, corrugated sheet,
corrugated board or any one or more of these stages and not having the facility
to manufacture kraft paper in the same factory”.
Therefore, prior to
01.07.2017, Central Excise duty on goods at S. No. 1 of the Table above was 6%
and on goods at S. No. 2 of the said Table was 12.5%.
Further, all types of
Cartons and boxes were chargeable to Punjab VAT @ 6.05% [5.5% + 10%
(surcharge)] in terms of Sr. No. 81 of Schedule-B. Therefore, prior to 01.07.2017, gross tax
(Central Excise duty + VAT) on the goods falling under S. No. 1 was 12.05% and
that on goods falling under S. No. 2 was 18.55%.
As per declared Policy of
GST Council on GST Rate fixation, the rates of GST on goods have been tried to
be kept at or about the gross tax (Central levies + State levies) at which such goods were
chargeable prior to 01.07.2017. Finance Minister Mr. Arun Jaitley’s statement
published in Newspapers on 28.04.2017 to the effect that “Fitment will be done by
adding the total incidence of current taxation (central plus state levies) and
then putting the good or service in the tax bracket closest to it” is worth noting in this regard.
Under GST regime, “Cartons, boxes and cases, of corrugated
paper or paperboard” are mentioned under Schedule-II to Notification No.
01/2017-Integrated Tax (Rate) dated 28.06.2017 [Sr. No. 122], and attract IGST
rate of 12%.
On the other hand, “Folding cartons, boxes and cases, of
non-corrugated paper or paperboard” do not find mention in any of the
Schedules under the said Notification. Goods which are not specified in
Schedule I, II, IV, V or VI of the said Notification attract IGST rate of 18%
in terms of Sr. No. 453 of Schedule-III to the said Notification. Therefore, “Folding cartons, boxes and cases, of
non-corrugated paper or paperboard” will be covered by Sr. No. 453 ibid.
and will attract GST @ 18%.
Conclusion:
Cartons, boxes and
cases, of corrugated paper or paperboard whether or not pasted with duplex sheets on the outer surface attract
GST rate of 12%.
Folding cartons, boxes
and cases, of non-corrugated paper or paperboard attract GST rate of 18%
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