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September 19, 2025

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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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