GST on Food Packaging After GST 2.0: A Smart 5-Step Check for Buyers (2026)

By the Alfa Foil packaging team, Raipur. Checked on 17 October 2026. This guide is for general information only and is not tax advice. Always confirm rates and HSN classification with your chartered accountant.

For most GST on food packaging questions, the short answer is that little changed. The GST rate schedules in force since 22 September 2025 list plastic food containers, cling film, garbage bags and aluminium foil rolls at 18%, the same rate listed before. The packaging cut most people heard about applies to paper and paperboard cartons and boxes, which are now listed at 5%, down from 12%.

The rate on any invoice follows the HSN code the seller uses, and classification can depend on the exact product. So the more useful question for a buyer is not “what is the rate?” but “which HSN heading is on my invoice, and does it fit the product?”

This guide sets out what the published schedules say, the HSN headings commonly used for each type of food packaging, two common misreadings, and a five-step check for any supplier invoice. Here is how GST on food packaging looks after GST 2.0, according to the published sources.

What GST 2.0 Changed for GST on Food Packaging, as Published

According to the rate notifications issued by the CBIC on 17 September 2025, GST on food packaging changed mainly for paper and wooden packaging. Plastic packaging and aluminium foil were not among the items moved to a lower rate. The changes followed the recommendations of the 56th GST Council meeting and took effect on 22 September 2025.

Broadly, the reform folded most items in the old 12% and 28% slabs into two main rates, 5% and 18%. Items already listed at 18%, which includes most plastic packaging, generally stayed where they were.

• Listed as cut from 12% to 5%: paper and paperboard cartons, boxes and cases (HSN 4819); wooden packing cases, crates and pallets (HSN 4415).
• Listed at 18% before and after: plastic articles for packing, such as containers, boxes and lids (HSN 3923); plastic tableware and kitchenware (HSN 3924); plastic film, including cling film (HSN 3920); aluminium foil (HSN 7607).

In practice, a restaurant or distributor buying plastic containers, cling film, garbage bags or foil rolls should expect GST on food packaging to read the same as it did before September 2025. If an invoice shows a different rate for these items, it is worth asking why.

Commonly Used HSN Headings for GST on Food Packaging

The table below shows the HSN headings commonly used for GST on food packaging, with the rates listed against them in the published schedules. Treat it as a starting point, not a ruling: your supplier’s invoice may show an 8-digit code under the same heading, and some products can be classified differently.

Read across the table and the pattern is consistent: in the published schedules, GST on food packaging made of plastic or aluminium foil did not move, while paper cartons did. Plastic packing containers are usually billed under 3923 and plastic tableware under 3924; both headings are listed at 18%. Where a product could reasonably sit under more than one heading, the classification is a question for your CA.

2 Common Misreadings About GST on Food Packaging

Much of the confusion about GST on food packaging comes from summaries that blend paper, plastic and metal packaging into one line. Two misreadings come up often.

“All packaging is 5% now.” Posts shared after September 2025 sometimes say packaging materials moved to 5%. As published, that cut applies to paper and paperboard packaging and wooden packing cases. Plastic packaging, cling film and aluminium foil were not on that list.

“Cartons and boxes are 18%.” Some rate charts online still show paper cartons at 18% or 12%. The schedules effective 22 September 2025 list paper and paperboard cartons, boxes and cases under HSN 4819 at 5%. Whenever a chart disagrees with an invoice, check the date the chart was last updated.

Why GST on Food Packaging Matters Differently to Restaurants and Distributors

GST on food packaging generally works as a pass-through for registered distributors but as a cost for most restaurants. The difference is input tax credit (ITC), and your own position depends on how your business is registered.

Distributors and wholesalers registered under regular GST can usually claim credit for the GST paid on packaging they buy for resale, and charge GST again when they sell. For them, the main concerns are getting the HSN heading right and keeping sales invoices consistent with purchase invoices.

Standalone restaurants and cloud kitchens generally charge 5% GST on food without input tax credit. Where that applies, the GST paid on containers, foil and cling film cannot be set off and becomes part of the cost of each order. Our guide on how to reduce food packaging cost looks at the wider cost picture, including packaging charges on Zomato and Swiggy.

A Smart 5-Step Check for GST on Food Packaging on Any Invoice

To check GST on food packaging on an invoice, match three things: the product description, the HSN code and the rate. If one of them does not fit the other two, ask your supplier and your CA before you file.

1. Find the HSN code on every line. B2B tax invoices generally show a 4-digit or 6-digit HSN code, depending on the seller’s turnover.
2. Check the first four digits against the description. For example, 3923 or 3924 for plastic containers, 3920 for cling film, 7607 for foil rolls, 4819 for paper cartons.
3. Check the rate against the heading. Compare it with the current rate schedule for that heading, not with an old chart or a social media post.
4. Compare suppliers for the same product. If two suppliers bill the same kind of item at different rates, they are probably using different HSN headings. Your CA can tell you which to follow.
5. Keep your own invoices consistent. If you resell packaging, bill it under a heading that matches how you bought it, unless your CA advises otherwise.

The official rate notifications and HSN guidance are published on the CBIC GST portal.

What the 57th GST Council Meeting Means for GST on Food Packaging

Based on the published press release, the 57th GST Council meeting on 8 October 2026 did not recommend any change to GST on food packaging. Its recommendations covered refunds, input tax credit rules, penalties and compliance, plus a few goods unrelated to packaging.

Two points are worth noting. According to reports of the meeting, rate matters will be taken up once a year at a dedicated meeting. The Council also recommended limited input tax credit for restaurant and outdoor catering services within the same line of business. Recommendations take effect only after they are notified, so restaurants should check the final wording with their CA.

GST on Food Packaging: Frequently Asked Questions

What is the GST on food packaging in India in 2026?

GST on food packaging depends on the HSN heading. The schedules in force since 22 September 2025 list plastic containers, cling film, garbage bags and aluminium foil rolls at 18%, and paper cartons and boxes at 5%. Confirm the heading for your products with your CA.

What is the HSN code for plastic food containers?

Plastic food containers are commonly billed under HSN 3923 (plastic articles for packing) or 3924 (plastic tableware and kitchenware). Both headings are listed at 18%, before and after GST 2.0.

What is the HSN code for aluminium foil rolls?

Aluminium foil rolls are commonly billed under HSN 7607 (aluminium foil), which is listed at 18%. The rate on this heading did not change under GST 2.0.

Did GST 2.0 reduce GST on plastic containers?

No, not according to the published schedules. Plastic containers under HSN 3923 and 3924 are listed at 18%, as before. The packaging cut applied to paper and paperboard cartons and wooden packing cases.

Can restaurants claim input tax credit on packaging?

GST on food packaging is usually a cost, not a credit, for restaurants. Most standalone restaurants and cloud kitchens charge 5% GST on food without input tax credit, so they generally cannot set off the GST paid on containers. Your CA can confirm what applies to your registration.

What is the GST rate on garbage bags?

Polyethylene garbage bags are commonly billed under HSN 3923, which is listed at 18%. That rate did not change under GST 2.0.

Rates change only through new notifications, so treat this page as a snapshot dated 17 October 2026. For the products on your own invoices, your chartered accountant has the final word on HSN classification and rates.

Whatever the rate, GST on food packaging is easier to plan when your product list is clear. Alfa Foil makes DAKON plastic food containers, aluminium foil containers, foil rolls, cling film and garbage bags. Browse the DAKON plastic container range or the aluminium foil rolls, and message us on WhatsApp at +91 92019 58140 with your requirement.