Tamil Nadu authority rules five percent tax on specific paper bags with credit eligibility

The ruling delivered by the Tamil Nadu Authority for Advance Ruling officially places kraft, greaseproof, and glassine paper bags under HSN 48194000. Under this classification, the supplies will attract a five percent Goods and Services Tax.

This determination provides clear guidance for manufacturers and suppliers operating within the state regarding their product taxation. Additionally, the authority permits eligible input tax credit for these items, ensuring businesses can claim appropriate tax offsets.

Stakeholders should review their current billing and tax filing procedures to align with this classification. Businesses must ensure they meet all statutory conditions required for claiming the permitted input tax credit on these specific paper bag supplies.