📢 Disposal paper cups to attract GST @18% - West Bengal AAR in re, Sekandar Sardar The Authority for Advance Rulings (AAR), West Bengal, has made a significant decision that impacts the disposable paper cups industry. 🥤

The AAR has ruled that disposable paper cups will now attract a Goods and Services Tax of 18%. This is a substantial change from the previously levied 5% GST. The applicant, Sekandar Sardar, a manufacturer of these cups, had sought a ruling on the correctness of the 5% GST levy.

The AAR highlighted that a disposable paper cup is primarily made out of paper, often coated with plastic or wax to prevent liquid leakage. It was observed that paper cups consist of approximately 95% high-degree cellulose paper board and about 5% inner polyethylene (PE) coatings

As a result, the AAR bench concluded that paper cups would fall under Tariff item 4823, and hence, would attract GST at 18%.