Aluminium Foil GST Rate & HSN Code 7607 Explained The packaging industry needs aluminium foil for its operations with the pharmaceutical sector and food sector, and the automotive sector also depends on its usage. All Indian companies working with aluminium foil need to use HSN classification for GST tax regulation to obtain appropriate tax benefits. The article delivers complete GST Rate details regarding aluminium foil under HSN Code 7607 as well as its specific classifications and exemptions, and industrial deployment.
What is Aluminium Foil? One millimetre or less thin aluminium metal sheets form aluminium foil through rolling procedures:
Food Packaging – Wrapping and preserving food items
Pharmaceuticals – Blister packs and strip packs
Industrial Applications – Thermal insulation and cable shielding
Domestic Use – Cooking, wrapping leftovers, etc.
Knowledge about GST treatment is vital because India's GST regulations affect companies using construction contracts in various industries.
Understanding HSN Code 7607 Nations throughout the world follow the Harmonized System of Nomenclature (HSN) as their uniform system for classifying their merchandise:
“The GST classification of aluminium foil rests at HSN code 7607 no matter whether it includes printing or backing from paper or paperboard or plastics or similar products when the maximum thickness remains below 0.2 mm.”
GST Rate on Aluminium Foil (HSN Code 7607) HSN Code Description GST Rate 7607 Products made of aluminium foil with or without printing stand as 18% of the total imports. 18% 760711 Not backed, rolled, but not further worked 18% 76071110 Not backed, rolled, but not further worked: Ordinarily used for tea chest lining 18% 76071190 Not backed, rolled, but not further worked: Other 18% 760719 Not backed, other 18% 76071910 Not backed, other: Ordinarily used for tea chest lining 18% 76071991 Not backed, other: Plain 18% 76071992 Not backed, other: Embossed 18% 76071993 Not backed, other: Perforated or cut-to-shape 18% 76071994 Not backed, other: Coated 18% 76071995 Not backed, other: Printed 18% 76071999 Not backed, other: Other 18% 760720 Backed 18% 76072010 Backed: Ordinarily used for tea chest lining 18% 76072090 Backed: Other 18%
As per the latest GST Council updates and CBIC guidelines, Aluminium Foil under HSN Code 7607 attracts 18% GST , broken down as:
CGST – 9%
SGST/UTGST – 9%
IGST (Inter-state supply) – 18%
Relevant GST Notification:
Notification No. 01/2017 – Central Tax (Rate) dated 28th June 2017
Amended Notifications have confirmed the 18% GST rate remains applicable
This rate is uniform across all types of aluminium foils classified under HSN 7607 unless specified otherwise under exemptions.
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Key Applications of Aluminium Foil and GST Implications 1. Food Industry
The application of aluminium foil serves to wrap products as well as maintain preservation, and serve as food packaging for cooked or raw items.
GST Impact: The GST regulations do not grant aluminium foil used in food packaging the lower tax rates available to actual food products.
2. Pharmaceuticals
Foils are used in blister packaging of tablets and capsules.
GST Impact: Even for pharmaceutical-grade foils, the GST rate is 18%. However, pharmaceutical companies may claim input tax credit (ITC) on such purchases.
3. Automotive and Industrial Applications
Used for insulation, fire barriers, and engine heat shields.
GST Impact: For B2B use in industrial applications, ITC can be claimed on purchases. However, correct classification and invoicing are crucial.
Input Tax Credit on Aluminium Foil Under the classification of HSN Code 7607, aluminium foil products within the category of surface-treated materials maintain a tax rate of 18%:
The foil must be used in the course or furtherance of business
A Proper Tax Invoice must be maintained
The supplier must be GST-compliant and file returns
Common Scenarios Where ITC is Claimed: Food Packaging Companies
Pharmaceutical Manufacturers
Exporters of packaged goods
Industrial product manufacturers using aluminium foil
Exemptions and Special Cases While aluminium foil as a raw material is taxed at 18%, there are no specific exemptions under the GST notifications for this item.
However, if aluminium foil is part of a composite supply or bundled with exempt goods , the tax treatment may differ:
Composite Supply Example:
A restaurant provides takeaway food in aluminium containers. The GST will be based on the principal supply—i.e., food (5% or 18%), not the foil.
Bundled Supply:
Gift packs containing chocolates wrapped in aluminium foil would be taxed based on the overall classification of the gift pack.
Export and Import of Aluminium Foil – GST Considerations 1. Exports
Exports of aluminium foil are zero-rated under GST , which means:
GST is not charged on the invoice
Exporters can claim a refund of ITC on inputs (including aluminium foil purchases)
Exporters must have:
A valid IEC (Import Export Code)
GST registration
LUT (Letter of Undertaking) or pay IGST and claim a refund
2. Imports
Imported aluminium foil under HSN 7607 is taxed at:
Basic Customs Duty (BCD)
IGST @ 18%
Social Welfare Surcharge (where applicable)
Importers can claim IGST paid as ITC if used for business purposes.
Aluminium Foil under Reverse Charge Mechanism (RCM) Generally, aluminium foil transactions do not attract Reverse Charge. However, if the supplier is unregistered and the buyer falls under specific notified categories, RCM provisions may apply.
For example:
Procurement from an unregistered supplier for packaging may require the recipient to pay GST under RCM.
How to Show Aluminium Foil in GST Invoices When invoicing aluminium foil (HSN 7607), ensure the following format:
Item Name : Aluminium Foil
HSN Code : 7607
GST Rate : 18%
Taxable Value
CGST & SGST (or IGST)
Total Invoice Value
Sample Invoice Line Item:
Item HSN Code Qty Rate Taxable Value CGST @9% SGST @9% Total Aluminium Foil 7607 100m ₹10/m ₹1,000 ₹90 ₹90 ₹1,180
Compliance Tips for Businesses Dealing in Aluminium Foil Use accurate HSN Code 7607 on invoices
Charge the correct GST rate (18%)
Maintain vendor and buyer GSTIN records
File monthly GST returns (GSTR-1, GSTR-3B)
Reconcile ITC claims with GSTR-2B
Maintain documentation for export-related refunds
Penalties for Wrong GST Rate or HSN Classification Incorrect application of GST rate or HSN Code can lead to:
Interest on unpaid tax
Penalties under Section 122 of the CGST Act
Blocking of ITC in case of mismatched invoices
Litigation if misclassification leads to tax evasion
Always consult with a GST practitioner or tax consultant for high-value or complex aluminium foil transactions.
Conclusion Aluminium foil taxed within HSN Code 7607 faces a GST tax rate of 18%, no matter what industry or final application it serves. All aluminium foil kinds, regardless of their condition, meet this HSN Code 7607 definition when their thickness remains under 0.2 mm. Every trading or manufacturing, or exporting business relies on this classification system for tax requirements and maximum utilization of tax credit applications.
Updated GST notification understanding and appropriate documentation practice should be primary focus points for businesses to both evade tax penalties and gain maximum tax credits, since these measures are essential for high-volume operations that pack goods and export products.
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FAQs 1. Does aluminium foil fall under the reverse charge mechanism (RCM) under GST? When it comes to the reverse charge mechanism (RCM), aluminium foil typically remains exempt. The reverse charge mechanism applies to purchase transactions of notified recipients from unregistered suppliers.
2. What is the HSN Code for aluminium foil in the food and pharmaceutical industry? People can locate definitions and tax rates associated with aluminium foil under HSN Code 7607, no matter how they utilize this product.
3. Can I claim Input Tax Credit (ITC) on aluminium foil purchases? Businesses can obtain Input Tax Credit for aluminium foil when they properly maintain GST invoices and use them during business activities such as manufacturing or packaging, or resale.
4. Are there different GST rates for printed or laminated aluminium foils? No. Under HSN Code 7607 all types of printed aluminium foil together with backed and laminated varieties are subject to GST at 18% uniform taxation.
5. Is aluminium foil taxed differently when used for exports? Exported aluminium foil quality is zero-rated under the GST regulations. Exporters are exempt from GST on their outward supplies while they can get a refund of their input tax credit spent on inward purchases.
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