{"id":91054,"date":"2026-11-13T05:30:00","date_gmt":"2026-11-13T00:00:00","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/?p=91054"},"modified":"2026-11-13T05:30:00","modified_gmt":"2026-11-13T00:00:00","slug":"gst-on-jute-products-bags-sacks-west-bengal","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/gst-on-jute-products-bags-sacks-west-bengal\/","title":{"rendered":"GST on Jute Products (2026): Raw Jute, Yarn, Fabric, Sacks and Jute Bags, and What Bengal Jute Businesses Should Know"},"content":{"rendered":"

Raw jute fibre is exempt from GST, while most processed jute goods \u2014 jute yarn, woven fabric and hessian, and sacks and bags of jute \u2014 are taxed at 5%. Jute mills and traders along the Hooghly therefore buy raw jute without GST, pay 18% GST on many inputs and services, and sell at 5%, which often builds up input tax credit. That accumulated credit can be refunded under the inverted duty structure rules, subject to conditions.<\/strong> This guide covers the rates, the refund, sales of sacking to government procurement agencies, and exports.<\/p>\n

GST rates on jute<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n
Item<\/th>\nGST<\/th>\n<\/tr>\n<\/thead>\n
Raw jute fibre<\/td>\nExempt<\/td>\n<\/tr>\n
Jute yarn<\/td>\n5%<\/td>\n<\/tr>\n
Woven fabric of jute, hessian<\/td>\n5%<\/td>\n<\/tr>\n
Sacks and bags of jute for packing (B-Twill, hessian)<\/td>\n5%<\/td>\n<\/tr>\n
Jute shopping and handbags<\/td>\nCheck the classification; most fall at 5% after the September 2025 changes<\/td>\n<\/tr>\n
Job work on jute textiles<\/td>\n5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

Classification decides the rate. A designer jute handbag classified as a handbag may be taxed differently from a plain jute shopping bag. Confirm the HSN on each product line.<\/p>\n

Input tax credit and inverted duty refund<\/h2>\n

Mills pay 18% GST on chemicals, spares, power-related services, repairs and transport in some cases, while their output is at 5%. Unused credit can be refunded under the inverted duty formula, except credit on capital goods and input services. Since the formula uses input goods only, mills should track goods credit and service credit separately in their books.<\/p>\n

Selling sacks to government agencies<\/h2>\n

Jute mills supply B-Twill sacks for foodgrain packing to state procurement agencies. GST is charged at 5% on these sales. Keep the supply order, inspection certificates and e-way bills together, because procurement payments are often reconciled months later.<\/p>\n

Small traders and the Burrabazar jute trade<\/h2>\n

Jute traders buying raw jute from farmers and selling raw jute do not need GST registration for exempt supplies alone. A trader selling taxable jute goods above \u20b940 lakh, or across states, must register. See our guide to GST for Burrabazar traders<\/a>.<\/p>\n

Exports<\/h2>\n

Jute products are exported under LUT without IGST, and the exporter claims refund of unused credit. Exporters need IEC and registration with the relevant export promotion council. India-Bangladesh trade restrictions since 2025 have also changed import routes for Bangladeshi jute products; check the current DGFT notifications before importing.<\/p>\n

FAQs<\/h2>\n

Is raw jute taxable under GST?<\/h3>\n

No. Raw jute fibre is exempt.<\/p>\n

What is the GST rate on jute bags?<\/h3>\n

Most jute sacks and bags are taxed at 5%. Check the classification for fashion handbags.<\/p>\n

Can a jute mill get a refund of accumulated GST credit?<\/h3>\n

Yes, under the inverted duty structure rules, for credit on input goods.<\/p>\n

TAXAJ handles GST returns, inverted duty refunds and accounts for jute mills and traders in West Bengal. See our GST return filing service<\/a> or talk to our Kolkata team<\/a>.<\/p>\n

\n
WhatsApp our Kolkata team<\/a><\/div>\n
Call 88028 12345<\/a><\/div>\n<\/div>\n

Last updated 11 November 2026. Sources: Notification 1\/2017 and 2\/2017-Central Tax (Rate) as amended, including the September 2025 rate changes; CGST Act, 2017, section 54(3); CGST Rules, rule 89(5). General information only; confirm the HSN and rate for each product.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

GST rates for West Bengal’s jute trade \u2014 raw jute, yarn, fabric, hessian, sacking and jute shopping bags \u2014 input tax credit, inverted duty refunds, sales to government procurement agencies, e-way bills and exports.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[974],"tags":[],"class_list":["post-91054","post","type-post","status-publish","format-standard","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/91054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=91054"}],"version-history":[{"count":1,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/91054\/revisions"}],"predecessor-version":[{"id":92170,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/91054\/revisions\/92170"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=91054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=91054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=91054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}