Amendments to Integrated Tax Rates on Bags and Sacks

The Central Government, under the Integrated Goods and Services Tax Act, makes amendments to Notification No. 1/2017- Integrated Tax (Rate) dated June 28, 2017.

Serial numbers 80AA and 171A in Schedule II, taxed at 12%, are omitted from the notification. In Schedule III, a new entry at 18% is introduced for woven and non-woven bags and sacks of polyethylene or polypropylene strips used for packing goods.

Additionally, flexible intermediate bulk containers are now included under the same tax rate. Effective from January 1, 2020, the amendments aim to streamline tax rates on packaging materials.

Issued by Gunjan Kumar Verma, Under Secretary to the Government of India.

The changes reflect efforts to maintain clarity and consistency in tax regulations concerning packaging materials.