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Gujarat AAR: Paper Bags Taxed at 5% Under HSN 48194000
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Gujarat AARtax

Gujarat AAR: Paper Bags Taxed at 5% Under HSN 48194000

July 8, 2026

The Gujarat AAR has determined that paper bags classified under HSN 48194000 are subject to a 5% GST, clarifying the tax implications for manufacturers and suppliers.

Gujarat AAR Ruling on Paper Bags Taxation

The Gujarat Authority for Advance Rulings (AAR) has provided a significant ruling stating that paper bags classified under HSN 48194000 attract a GST rate of 5% as per Entry 319 of Notification No. 09/2025-CT (Rate). This decision is critical for manufacturers and suppliers in the paper products sector.

Previously, there was ambiguity regarding the appropriate GST rate for certain paper products. By conclusively classifying paper bags under a specific heading, the AAR aims to bring clarity and uniformity to the tax application process. This ruling distinguishes the tax treatment of paper bags from other similar products that may be subject to different rates.

Legal practitioners must take note of this ruling as it will inform their advisory services to clients involved in manufacturing and supplying paper bags. Ensuring compliance with the AAR's determination is paramount to avoid penalties related to incorrect GST filings.

Citations

  • GST Notification No. 09/2025-CT
Practice Areas:tax

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