Disposal paper cups to attract GST @18%

The Authority for Advance Rulings (AAR), West Bengal, has held that disposable paper cups will attract GST of 18%.

The applicant Sekandar Sardar, the manufacturer of these cups had sought a ruling on the correctness of 5% GST levy.

In their order, the AAR bench pointed out that a disposable paper cup is made out of paper and often coated with plastic or wax to prevent liquid from leaking.

“It is known that paper cups consist of approximately 95% high-degree cellulose paper board. Generally, disposable paper cups are composed of 5% inner polyethylene (PE) coatings to prevent leakage,” observed the AAR bench. Thus, it held that paper cups would fall under Tariff item 4823, and would attract GST at 18%.

Source: The Times of India