2018 (10) TMI 1051 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 324 (A. A. R. – GST) – Classification of goods – rate of tax – Nonwoven Rice Bags – Held that:- The applicant purchases non-woven fabric roll, convert into sheets by cutting and on printing, stitch into bags which are used mainly for packing rice and food products. They have further stated that their product non woven fabric bags of various sizes falls below ₹ 1000 each.
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Heading 6305 covers textile sacks and bags of a kind normally used for the packing of goods for transport, storage or sale – The applicant manufactures non-woven fabric bags which is used mainly for packing rice and food products and the product made of 100% polypropylene fiber is classifiable under 63053300.
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Rate of tax – Held that:- The applicant has stated that their product nonwoven fabric bag falls below ₹ 1000/ Therefore, the applicable rate is 2.5% CGST as per S.No. 224 of Schedule I of Notification No.
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ear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s.. Sharmila Screen Printers(Legal Name Kanniwadi Nagarajan Sharmila) doing business at Plot No.2072, 90th Cross Road, Villapuram HB, Madurai – 625 011. (Hereinafter called the Applicant) is a registered person under the GST Act, 2017 with GSTIN 33AQWPS0012N1ZI. The Applicant has submitted a copy of Challan evidencing payment of application fees of ₹ 5, 000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They have filed an Application seeking Advance Ruling on the following: Clarification on Rate of tax and HSN code for Nonwoven Rice Bags 2.1 The Applicant manufact
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63059000- Other made up textile articles, sets, worn cloths and woven textile articles and liable to be taxed at 5% GST if the sale Value does not Exceed ₹ 1000/- Vide Sl.No.224 of schedule 1 of Notification 1/2017 C Tax (Rate) dated 28.06.2017. 3.1 The Applicant was heard in person. They submitted Photos of raw material, printing and final product. They stated that they buy Nonwoven fabrics made of 100% polypropylene fiber which are classified under HSN 5603. They submitted input invoices, invoice for outward supply under the GST regime, write-up of manufacturing process. They also produced photo copies of Nonwoven bags manufactured by them and the raw material such as Nonwoven fabric roll for perusal. They stated that they sell their products to rice mills and the same is used for packaging only and not sold as Shopping bags or Carry bags. They stated that the goods are of 25 Kg, 5 Kg, 10 Kg capacity and all are sold at below ₹ 1000/- 3.2 All documents submitted were exa
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planation (iii) and (iv) to Notification No. 1 / 2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. Applying this Rule, the Description of Chapter Heading 6305 is as follows: Sacks and bags, of a kind used for the packing of goods and more specifically, 6305 33 00, states as follows: Of man-made textile materials: Other, of polyethylene or polypropylene strip or the like Further, Explanatory Notes to the Heading 6305, is as follows: 63.05 Sacks And Bags, Of A Kind Used For The Packing Of Goods (+), 630510 – Of jute or of other textile bast fibres of heading
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