GST ON ARTIFICIAL STONE: DETERMINING FACTORS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 7-9-2018<\/p>\n
The question of classification of product called 'caesarstone' which is an article made from artificial stone has been recently examined by Authority for Advance Ruling (AAR) and later by Appellate Authority for Advance Ruling (AAAR), Maharashtra in the matter of Re: Hafele India Pvt. Ltd.
\nAbout Product
\n'Caesarstone' is a product imported by applicant. This product is an article made from artificial stone. It is a product made using artificial or engineered stone. Basic Customs Duty was paid on the same as per Customs Tariff Act, 1975- Heading 6810 on goods cleared for home consumption as also the IGST. The caesarstone quartz surfaces were used for onward domestic sales in India. These are used as kitchen \/ furniture \/ home accessories.
\nCaesarstone is 'engineered quartz surface' which outperforms natural stone. The manufacturer does not use it <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g various processes and is known in trade parlance by its new name, nature and use and not known by a mixture of quartz combined with other materials. Therefore the quartz contained in the goods in question i.e. Caesarstone, is not in crude state and has undergone processes beyond those allowed in Note 1 of Chapter 25. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 6, viz. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n racter. The processes being undertaken by the manufacturer for this product are much beyond the processes mentioned in Chapter Note 1 to Chapter 25, and thus the said goods cannot be classified under this Chapter. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST ON ARTIFICIAL STONE: DETERMINING FACTORSBy: – Dr. Sanjiv Agarwal Goods and Services Tax – GSTDated:- 7-9-2018 The question of classification of product called 'caesarstone' which is an article made from artificial stone has been recently examined by Authority for Advance Ruling (AAR) and later by Appellate Authority for Advance Ruling (AAAR), Maharashtra in the … Continue reading “GST ON ARTIFICIAL STONE: DETERMINING FACTORS”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13574","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13574"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13574\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nAdvance Ruling
\nThe assessee was of the view that Caesarstone merits classification under HSN 2506 of the GST Schedule, however, at the time of importation, the same was being classified in heading 6810 for the purpose of levy of Basic Customs Duty (BCD) and IGST on the same. Considering the ambiguity in classification, the appellant initiated an application for an Advance Ruling before Advance Ruling Authority for determination of correct classification of Caesarstone under the Maharashtra Goods and Services Tax Act, 2017. Chapter 25 covers the naturally occurring quartz which has undergone changes without changing the structure of product (Heading 2506). Chapter 25 s<\/p>\n
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\n * 25061010 – In lumps
\n * 25061020 – In powder
\nEven if 'Quartz' was to be imported, it would have been classified under 2506 in the above two forms only. However, the form in which the goods are imported, even if it is presumed for the sake of argument that these are quartz, are neither in form of 'lumps' nor in the form of 'powder', but are Agglomerated\/Fabricated\/Engineered stone in slab form. For correct classification, one needs to understand the processes that the product has undergone from the primary state of the materials used to the finished state of the product being offered 'off the shelf.
\nChapter Note 1 to chapter 25 stipulates that the headings of this Chapter cover only products which are in the crude state or which have been washed, crushed, ground, powdered, levitated, sifted, screened, concentrated by floatation, magnetic separation or other mechanical of physical processes (except crystallisation), but not products which have be<\/p>\n
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\nThe competing entry HSN 6810 covers Articles of Artificial Stones. As per the Explanatory Notes to HSN 6810, 'Artificial Stone is an imitation of natural stone obtained by agglomerating pieces of natural stone or crushes or powdered natural stone' (limestone, marble, granite, porphyry, serpentine etc.) with lime or cement or other binders (e.g. plastics). Articles of artificial stone include those of 'terrazzo', 'granito', etc.' The Explanatory Notes also state that- 'when lumps of quartz of various sizes are introduced into the mixture, artificial type products are obtained.'
\nAs per the Explanatory Notes to HSN 6810,
\n 'Artificial Stone is an imitation of natural stone obtained by agglomerating pieces of natural stone or crushes or p<\/p>\n
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