Facts of the Case:

The applicant is engaged in the manufacture and supply of Polypropylene (PP) Packing Boxes made from plastic granules using semi-automatic machinery. The products are used as packing containers and are sometimes supplied along with lids, caps, stoppers, and other closures. The applicant was classifying the products under HSN 39239090 and discharging GST at 18% (9% CGST + 9% SGST). To obtain certainty regarding the correct classification, the applicant sought an advance ruling on the appropriate HSN code applicable to PP Packing Boxes.

Issue:

Whether PP Packing Boxes manufactured from polypropylene plastic granules are correctly classifiable under HSN 39239090 or under any other tariff entry of Chapter 39 of the Customs Tariff Act, 1975, and what would be the applicable classification for the accompanying lids, caps, and closures.

Held That:

The Authority for Advance Ruling held that the product manufactured and supplied by the applicant, namely PP Packing Boxes, is correctly classifiable under Tariff Item 39231090 of the Customs Tariff Act, 1975. The Authority observed that the product is manufactured from polypropylene plastic granules, which are polymers of propylene falling within Chapter 39 dealing with plastics and articles thereof. Referring to Chapter Note 1 of Chapter 39, the Authority noted that the manufacturing process adopted by the applicant, involving moulding and shaping of plastic granules through machinery, squarely brings the product within the scope of “plastics” under the tariff.

The Authority further examined Heading 3923, which covers “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.” Since the applicant’s product is specifically used as a container for packing goods and is supplied as a packing box of different sizes and categories, it clearly answers the description of an article used for packing goods. The Authority found that the product is in the nature of a box, case, crate or similar article and therefore merits classification under sub-heading 392310 relating to “Boxes, cases, crates and similar articles.”

Upon examining the tariff entries under sub-heading 392310, the Authority observed that the PP Packing Boxes do not fall under the specific tariff items relating to plastic containers for audio/video cassettes, watch or jewellery boxes, insulated ware, or packing for accommodating connectors. Consequently, the product is appropriately classifiable under the residual category of that sub-heading, namely Tariff Item 39231090 – Other.

The Authority also separately considered the classification of the lids, caps, covers, stoppers and closures supplied along with or separately from the boxes. It held that these items are specifically covered under sub-heading 392350, which deals with “stoppers, lids, caps and other closures.” Since the products are not bottle caps or closures covered under the specific tariff item 39235010, they would be classifiable under Tariff Item 39235090 – Other.

Having determined the classification, the Authority referred to Serial No. 124 of Schedule II to Notification No. 01/2017-Central Tax (Rate), as amended, which covers Heading 3923 with the description “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics.” Since both the PP Packing Boxes and the associated lids and closures fall within Heading 3923, the Authority held that the supplies attract GST at the rate of 18% (9% CGST + 9% SGST) for intra-State supplies and 18% IGST for inter-State supplies.

Since Heading 3923 is covered under Serial No. 124 of Schedule II to Notification No. 01/2017-Central Tax (Rate), as amended, the products attract GST at the rate of 18% (9% CGST + 9% SGST).

Case Name: In Re: M/s. Jai Hind Plastic. dated 25.05.2026