The supply of disposable paper cups draws 18% GST, the West Bengal Authority of Advance Ruling (AAR) ruled.
The bench of Tanisha Dutta and Joyjit Banik witnessed that a disposable paper cup is made out of paper and often coated with plastic or wax to prevent liquid from leaking out or soaking through the paper. It may be made from recycled paper.
It is comprehended that paper cups comprise approximately 95% high-degree cellulose paper board. Disposable paper cups are composed of 5% inner Polyethylene (PE) coatings to prevent leakage. The benchmark is covered under the description falls under the Chapter, Heading, Sub-heading, or Tariff Item 4823, as quoted in entry serial number 157 of Schedule-III of GST notification No. 1/2017-Central Tax (Rate) dated June 28, 2017 (as amended).
The petitioner is in the business of manufacturing paper cups. The petitioner makes the purchases of both printed and non-printed paper sheets and bobbins as inputs towards the purpose of manufacturing paper cups.
The goods are being supplied by the petitioner like disposable paper cups as manufactured by him, levying output tax at a 5 percent GST rate and the petitioner classifies the item under HSN Code 4823 69.00.
While asking for the advance ruling the petitioner had made the application for the taxability of the paper cups.
GST AAR ruled that under HSN 4823-4000, the supply of disposable paper cups as manufactured by the applicant is covered and shall draw an 18% GST.
| Applicant Name | Sekandar Sardar |
| GSTIN of the applicant | 19BJOPS8825F1ZH |
| Date | 04.04.2024 |
| Case Number | WBAAR 01 of 2024 |
| Applicant‟s Representative Heard | Mr. Sujit Kumar Ghosh, Authorised Representative |
| West Bengal GST AAR | Read Order |
