Corrugated Boxes and Packaging Sector: GST Rates, HSN Codes, and Classification Details

One of the most widespread types of packaging material that is widely used in India is corrugated boxes. Industries like e-commerce, FMCG, textiles, electronics, pharma, and food depend on them for packing goods. Due to this, proper GST classification is extremely crucial to manufacturers, traders, and exporters. 

This guide will help you understand the GST Rate for Corrugated Boxes, HSN codes, and classification details for the Corrugated boxes and packaging sector.

The GST Rates in the Packaging Industry

GST rates for packaging materials depend on the type of material used, not on the usage. All of the categories are represented by various HSN chapters (39, 48, 73, etc.). Corrugated boxes are made of paper, and therefore, they fall under Chapter 48 of the GST HSN list.

Even though all are “packaging products,” a paper carton, a corrugated shipping box, a folding board retail box, and a plastic crate can fall under different HSN Codes with Different GST Rates.

• Corrugated boxes with HSN 4819 will receive 18% GST.
• The same is also true for paperboard retail cartons (HSN 4819 / 4823), which have 18% GST.
• Corrugated boxes made of kraft paper are also usually subject to taxation of 18%.

Awareness of such differences helps with the right invoicing and proper flow of Input Tax credit (ITC) in the supply chain.

HSN Codes, GST Rates, and Product Categories.

India has one of the largest packaging industries globally, as it encompasses many packaging types. However, Corrugated and paper-based products have dominated the market due to their low cost, ability to be recycled, and industrial usage.

Except few, most packaging products are classified under Chapter 48 of the Harmonized System of Nomenclature (HSN) framework under GST, which is related to paper and paperboard products, cartons, kraft paper products, and packing containers.

The list below highlights the classifications of packaging items based on references from the industry and GST notifications:

What is an Inverted Duty Structure (IDS)?

IDS occurs when the rate of GST on raw materials is greater than the rate of GST on the finished item.

This is a very common scenario in the corrugated box business:

Input: GST rate for Kraft Paper is 18%

Output: GST rate for Corrugated Boxes is 12%

This leads to:

Extra Input Tax Credit (ITC)

Working capital blockage

Requirement to file GST refund under IDS.

Simple Example

One manufacturer purchases kraft paper for ₹50,000.

GST @ 18% = ₹9,000

He sells corrugated boxes at 50,000 rupees.

GST @ 12% = ₹6,000

Extra ITC = ₹3,000

This falls under IDS, and a refund claim is required.

How MSMEs Can Claim GST Refund Under IDS

The ITC block is common among small packaging manufacturing companies. In order to claim an IDS Refund easily, the MSMEs must consider the following steps:

1. Correct HSN Classification

Enter the correct 8-digit HSN code for all outgoing invoices. Portal errors and mismatch of refunds arise because of inconsistency between purchase and sales HSN codes.

2. Match GSTR-1, GSTR-3B & GSTR-2B

For refunds to be approved, three returns must align:

• Outward supplies to be included properly in GSTR-1.
• ITC appearing in GSTR-2B must be accurate.
• GSTR-3B: Tax summary must match GSTR-1 and 2B entries

Any mismatches, like missing ITC, wrong invoice value, or incorrect tax breakup, result in rejection of refunds.

3. Maintain Supplier Compliance.

Your ITC will be blocked in case suppliers file late returns or post incorrect invoices. MSMEs are supposed to keep track of GSTR-2B monthly.

4. Complete Refund Documentation.

MSMEs should have certain documents before filing an IDS Refund. Required documents include:

• Statement of inward invoices.
• Statement of outward zero-rated or lower-rated supplies.
• ITC computation sheet
• CA certificate (in some cases)

5. File Refund Application (RFD-01)

To apply for an IDS Refund:

1. Log in to the GST Portal(https://www.gst.gov.in/)
2. Click on 'Refund of Accumulated ITC due to Inverted Tax Structure.
3. Upload all relevant documents
4. Submit form RFD-01 along with the Verification Form

Once the application has been submitted, you will receive an Application Reference Number (ARN), and it will be forwarded to the local jurisdiction officer.

6. Keep Digital Records

GST Officers may ask for additional documentary evidence when you undergo a GST audit. An MSME should keep at least:

• Digital Copies of Invoices
• Purchase/Sale Mapping Reports
• Shipping and Packing Slips
• Certificate of Payment

Documentation saves time by granting faster finalization of refunds and healthier cash flow.

Why This Matters

A well-managed IDS Refund cycle keeps working capital free, helping MSMEs manage raw material purchases, production cycles, and exports without cash strain.

Conclusion

The industry of corrugated boxes and packaging is largely under the requirement of proper GST classification.It is necessary to know the right GST Rate on Corrugated Boxes (12 per cent), GST on Packaging Materials, and the GST rate on kraft paper (18 per cent) to ensure that no compliance issues occur and the process of claiming a refund will proceed without any issues too.

As this industry falls under the Inverted Duty Structure, the GST refunds need to be claimed regularly by the MSMEs to ensure a healthy cash flow and reduce the financial burden.

Frequently Asked Questions

1. What is the HSN of corrugated boxes?
The HSN number of corrugated boxes is 4819, and the usual subcodes are 48191010 and 48191090.

2. What is the amount of GST on the corrugated boxes?
A corrugated cardboard box attracts 12 per cent GST.

3. What is the corrugated cardboard sheet HSN code?
Corrugated sheets belong to HSN 4808 or even 4804/4805, depending on the type of paper.