Case of Sunita Kohli, AAR Rajasthan Ruling Dated 27th March 2026. AAR clarified that determining if a product is ‘biodegradable’ falls outside its scope. The bags, if made from polymer or composite plastic are classified under chapter 39, and if made from paper are classified under chapter 48. This classification is independent of whether material is biodegradable or not. AAR held that if the bags are biodegradable, the benefit of entry 319 schedule I would be available and GST @ 5% will be applicable.