GST rate and HSN code for handbags and wallets
GST on handbags is 18% (HSN 4202) from 22 September 2025 for leather, plastic and most fabric handbags, purses and wallets. Handbags and shopping bags of cotton (4202 22 20) or jute (4202 22 30) are 5%, down from 12%. A bag shop needs the material of each bag in its item list.
HSN code and GST rate for handbags and wallets
| Condition | HSN | GST | CGST + SGST | IGST | Schedule entry |
|---|---|---|---|---|---|
| Handbags and shopping bags of cotton | 4202 22 20 | 5% | 2.5% + 2.5% | 5% | Notification 9/2025-CT(Rate), Schedule I, S. No. 289 |
| Handbags and shopping bags of jute | 4202 22 30 | 5% | 2.5% + 2.5% | 5% | Notification 9/2025-CT(Rate), Schedule I, S. No. 290 |
| Leather, plastic or other handbags, wallets, purses | 4202 | 18% | 9% + 9% | 18% | Notification 9/2025-CT(Rate), Schedule II, S. No. 145 |
In force from 22 September 2025. Inside your State, half the rate is CGST and half SGST; for a buyer in another State the full rate is IGST (same entries in Notification 9/2025-IT(Rate)). Entry wording (shortened): “Handbags, wallets, purses (4202); handbags and shopping bags of cotton or jute”.
What changed in September 2025
| Condition | Before 22 Sep 2025 | From 22 Sep 2025 |
|---|---|---|
| Handbags and shopping bags of cotton | 12% | 5% |
| Handbags and shopping bags of jute | 12% | 5% |
Old rate as listed in Annexure I of the PIB release on the 56th GST Council meeting (3 September 2025).
What to print on the bill
- Cotton or jute handbags and shopping bags: 5%.
- Leather, PU, plastic and other handbags, purses, wallets: 18%.
- Leather belts: 4203 at 18%.
- HSN digits: 4 if your turnover last year was up to ₹5 crore, 6 above that; up to ₹5 crore you may leave HSN off bills to unregistered buyers (Notification 78/2020-CT). More in B2C bill rules.
Common mistakes
- Billing a PU leather handbag at 5%.
- Billing a jute laptop bag or backpack as a jute handbag.
- Billing cotton tote bags at 18%.
Put the right HSN and GST on every bill
RichPOS saves the HSN and GST rate on each item and applies them on every bill automatically, with the HSN printed on A4 GST invoices and GST reports by HSN for your CA. Free 30-day trial, ₹99/month for 3 months (then ₹199/month).
Questions about GST on handbags and wallets
Are jute bags 5%?
Handbags and shopping bags of jute are 5% (Schedule I, S. No. 290).
What is the GST on wallets?
18% under 4202 (Schedule II, S. No. 145).
What is the GST on paper bags?
Paper sacks and bags, and biodegradable bags, are 5% (Schedule I, S. No. 319).
More items in HSN chapter 42 and clothing, footwear and jewellery
Look up another item in the HSN and GST rate finder, or see all GST rates by category.
General information, not tax advice. Rates are taken from Notification No. 9/2025-Central Tax (Rate), dated 17 September 2025, as amended, and were last checked on 16 October 2026. The rate depends on the exact description and classification of your product: check it with your CA.