18% GST imposed on Paper Bags under Residual Entry of Schedule 3 under Challenge: Madras HC stays Proceedings

The Madras High Court has stayed the proceedings challenging the imposition of 18% GST on paper bags classified under the residual entry of Schedule 3. The petitioner argued that paper bags should be classified under a different entry attracting a lower GST rate. The court observed that the issue needs detailed examination and stayed the proceedings. The GST Council and the government have been asked to respond. This case highlights the complexities and disputes arising from GST classifications and their significant impact on businesses. The final outcome of this case will have implications for the taxation of paper bags and similar products.