In Re: Kanniwadi Nagarajan Sharmila (Prop: M/s. Sharmila Screen Printers)
GST
2018 (10) TMI 1051 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 324 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 12/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear 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
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ade some announcement that these bags fall under HSN Code 6305 are liable to be taxed at 5% if the sale value falls below Rs. 1000/-. For the value of more than Rs. 1000, it is liable to be taxed at 12%, but the GST Act schedule does not speak about that and the HSN Code 6305 is missing while introducing the GST Act.
2.2 The Applicant have further stated that their association approached the GST & Central Excise department at Madurai and requested to clarify the rate of tax on the Nonwoven Bags. The department vide letter No. IV/ 16/84/2017 – Tech (GST) Vol-1 dated 01.01.2018 addressed to their association had clarified that Nonwoven Bags & Rice Bags falls under HSN Code “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 Rs. 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
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lour, cutting into desired sizes and printing on it based on various designs, logos required by their clients. They are then stiched into bags and sold to their clients.
4.1 The issue for decision before us is the appropriate Rate of Tax and HSN code for Nonwoven Rice Bags manufactured by the applicant. From the various submissions of the applicant, it is evident 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 Rs. 1000 each.
4.2 In terms of explanation (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
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; – Of man-made textile materials :
6305.32 Flexible intermediate bulk containers
6305.33 Other, of polyethylene or polypropylene strip or the like
6305.39 Other
6305.90 – Of other textile materials
This heading 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 fibe
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