West Bengal AAR classifies PP packing box under HSN 39231090 and rates it under Schedule II

5-Second Takeaway

The West Bengal Authority for Advance Ruling held that the applicant’s PP packing box falls under tariff item 39231090 as an article for packing goods made of plastics. It also held that the lids, caps and covers of the boxes fall under tariff item 39235090, with the goods in sub-heading 3923 taxable at 9% CGST and 9% SGST.

The West Bengal Authority for Advance Ruling considered an application under section 97(1) of the GST Act for classification of a product described as a PP packing box. The question was not pending before any other authority under the GST Act, and Revenue raised no objection to admission of the application.

The Authority first noted that the product falls within Chapter 39. It then examined Heading 3923, which covers articles for the conveyance or packing of goods, of plastics. On that basis, it held that the applicant’s Poly Propylene packing box is an article for packing goods made of plastics.

Because the containers are in the nature of boxes, cases, crates and similar articles, the Authority classified them under sub-heading 392310 and held that the correct tariff item is 39231090. It further stated that sub-heading 3923 appears in Schedule II and that goods under this sub-heading are taxable at 9% CGST and 9% SGST.

The Authority also held that the lids, caps and covers of the boxes are covered by tariff item 39235090.