In Re : M/s. JJ Fabrics
GST
2018 (6) TMI 560 – AUTHORITY FOR ADVANCE RULINGS, KERALA – 2018 (13) G. S. T. L. 444 (A. A. R. – GST), [2018] 2 GSTL (AAR) 51 (AAR)
AUTHORITY FOR ADVANCE RULINGS, KERALA – AAR
Dated:- 29-5-2018
ORDER No. CT 15492/18-C3
GST
Senthil Nathan S IRS, Member, CGST And N. Thulaseedharan Pillai, Member, SGST
RULING
1. M/s. JJ Fabrics, Ernakulam, manufacturer of carry bags made of poly propylene non-woven fabrics, has preferred an application for Advance Ruling on the rate of tax of the same.
2. The applicant has submitted that the primary raw materials for polypropylene sheets are polypropylene granules, color master batches and filter content (calcium carbonate). These raw materials are sucked th
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abrics.
4. The applicant has submitted a copy of the test report from Centre for Biopolymer Science & Technology wherein it is certified that non woven carry bags made by the applicant is a polypropylene product with filler content 42.29%.
5. The applicant further asserted that as per the clarification issued by the Commissioner of CGST and Central Excise, Madurai the said non-woven bags comes under HSN 6305 90 00 with 2.5% CGST & 2.5% SGST if sale value does not exceed Rs. 1,000/- per piece.
6. The applicant has also referred to the clarification order C3/17556/09 dated 29.09.2009, wherein it was clarified that packing bags, textile bags, and carry bags made out of non-woven fabrics of polypropylene is covered by the HSN code 6305.33.00
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, of polyethylene or polypropylene strip or the like
9. The above HSN code appears both in Schedule I and Schedule II of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and State Notification 360/2017 dated 30.06.2017 based on the sale value of the product. The entry reads as under:
SCHEDULE 1
224
63 [other than 6309]
other made up textile articles, sets, of sale value not exceeding Rs. 1000/- per piece
SCHEDULE 2
171
63 [Other than 6309]
Other made up textile articles, sets of sale value exceeding Rs. 1,000/- per piece [other than Worn clothing and other worn articles; rags]
10. In the present case, since the sale value of non-woven carry bags made of polypropylene is less than Rs. 1,000/- per piece, it will attract
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