Think Tank Calls for 18% Higher GST in Tetra Pack


A think tank has asked the GST Council to levy an 18% higher tax on the tetra pack, arguing that the product is incorrectly classified in the 12% slab as aseptic paper-based packaging.

Due to its cardboard appearance, the tetra-pack (HSN-4811), a multilayer packaging (plastic + paper + aluminum) wrongly considered as aseptic paper-based packaging during the structuring of the GST in 2017, in Delhi and in Mumbai- based think tank claimed.

Pandit Deendayal Upadhyay Smriti Manch (PDUSM) pointed out that other aseptic packaging containing plastic or aluminum or multi-materials like tetra-packaging are subject to an 18% GST rate.

The think tank appealed to the GST Council, the Central Council for Indirect Taxes and Customs (CBIC) and the Ministry of Finance to change the GST bracket of the tetra pack from 12% to 18%. A statement from PDUSM claimed that the tetra pack is also a key source of waste pollution in India. According to data collected by TERI, the recycling rate of tetra packs in India has remained around 30% over the past four years. About. 3000 crore tetra packs have been tossed / discarded since 2017, leaching various plastic, aluminum and paper based toxins into the soil and water bodies. The think tank claimed that due to bad taxation around 948 crore in tax revenue has been lost since 2017.

Summary of the news:

  • Think Tank Calls for 18% Higher GST in Tetra Pack
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