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) – Rate of GST – poly propylene non-woven fabrics – Held that:- The Test Report of the Centre for Biopolymer Science & Technology reveals that the product of the applicant i.e., non woven carry bag is made of polypropylene. In Customs Tariff Act, sacks and bags made of polypropylene strip or the like is classified under Chapter 63 of the Act.
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In the present case, since the sale value of non-woven carry bags made of polypropylene is less than ₹ 1,000/- per piece, it will attract tax @ 5% vide entry No. 224 of schedule 1 of both CGST and SGST notification.
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Ruling:- Carry bags made of polypropylene non-woven fabrics is classified under entry 224 of Schedule 1 of the Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and State Notification 360/2017 dated 30.06.2017, and hence taxable @ 5% [SGST -2.5%; CGST-2.5%]. – ORDER No. CT 1549
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n granted registration by Office of Textile Commissioner for manufacturing of textile based products. Various authorities under Textile Ministry had examined the products and certified that the fabrics manufactured by applicants are technical textile fabrics. 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 ₹ 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
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alue 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 ₹ 1000/- per piece SCHEDULE 2 171 63 [Other than 6309] Other made up textile articles, sets of sale value exceeding ₹ 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 ₹ 1,000/- per piece, it will attract tax @ 5% vide entry No. 224 of schedule 1 of both CGST and SGST notification. 11. In the light of the above, we rule as under. RULING Carry bags made of polypropylene non-woven fabrics is classified under entry 224 of Schedule 1 of the Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 and State Notification 360/2017 dated 30.06.2017, and hence taxable @ 5% [SGST -2.5%; CGST-2.5%]. . – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmana
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