In Re : M\/s. Ginni Filaments Limited
GST
2018 (9) TMI 696 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (16) G. S. T. L. 648 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – AAR
Dated:- 20-7-2018
05\/2018-19 in Application No. 02\/2018-19
GST
VIPIN CHANDRA AND AMIT GUPTA, MEMBER
\nPresent for the applicant: R.S. Sharma, Adv.
\nPresent for the Jurisdictional Officer: None
\n1. This is an application under Sub-Section (1) of Section 97 of the CGST\/SGST Act, 2017 and the rules made thereunder filed., by M\/s. Ginni Filament Private Limited, Plot No.98, Sector-5, IIE, SIDCUL, Haridwar having Drugs and Cosmetics License Number 7\/C\/UA\/2017 dated 2.4.03.2017 and seeking an advance ruling on HSN classification under the GST Schedule as well as the GST rates of the below mentioned products which the applicant is engaged in manufacturing and supply to its various customers in the State of Uttarakhand and outside of the state.
\na. Wet Baby Wipes.
\nb. Wet Face <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r services or both = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n assification of products i.e Wet wipes, Bed & Bath Towels & Shampoo Towel respectively. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n g felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not perfumed or put up for retail sale, falls under HS code 3401 and attracts 28% GST. With effect, from 15.11.2017. it attracts 18% GST; (Notification 41\/2017-Cental Tax (Rate)) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ts in this case are almost same and function founds to be same. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n felt and nonwovens, impregnated, coated or covered with perfume or cosmetics; animal toilet preparations. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d further the addition of the 'Chlorohexidine Gluconate 20% enhances its function as “disinfectant” who kill the bacteria alongwith the 'fragrance' to make the person to feel better. Basically, the conclusion is that the product reflects its primary function which is “clean the skin”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ons [e.g perfumes or cosmetics (Chapter 33)] = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ble Apex Court judgment dated 13.04.2018 in CIVIL APPEAL NO. 1766 OF 2009 in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS MADHAN AGRO INDUSTRIES (I) PVT. LTD = 2018 (4) TMI 721 – SUPREME COURT held that: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re : M\/s. Ginni Filaments LimitedGST2018 (9) TMI 696 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (16) G. S. T. L. 648 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – AARDated:- 20-7-201805\/2018-19 in Application No. 02\/2018-19 GSTVIPIN CHANDRA AND AMIT GUPTA, MEMBER Present for the applicant: R.S. Sharma, Adv. Present for … Continue reading “In Re : M\/s. Ginni Filaments Limited”<\/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-13679","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13679","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=13679"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13679\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n(f) Whether the applicant is required to be registered
\n(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
\n4. As per section 97(2) (a) & (e) of CGST\/SGST Act, 2017 the advance ruling can be given on “classification of any goods or services or both”, and determination of the liability to pay tax on any goods or services or both” respectively. In the present case applicant has sought advance ruling on HSN classification under the GST Schedule as well as the GST rates of the aforementioned products which the applicant is engaged m manufacturing and supply to its various customers in the State of Uttarakhand and outside of the state, details of which are as.
\na. Wet Baby Wipes
\nb. Wet Face Wipes.
\nc. Bed and Bath Towels.
\nd. Shampoo Towels.
\nTherefore, in terms of said Section 97(2) of CGST\/<\/p>\n
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\n8. The applicant has requested to classify the following goods under the GST Regime quoting the reason of overlapping entries in the GST Schedule as notified by the Notification No. 1\/2017-Central Tax(Rate) dated 28.06.2017 and Notification No. 1\/2017- State Tax (Rate) dated 30.06.2017 as amended vide Notification No.41\/2017-Central Tax (Rate) dated 14.11.2017 and the Notification No. 41\/2017-State Tax(Rate) dated 14.11.2017 (“herein collectively referred to as the 'Rate Notifications”):
\na. Wet Baby Wipes.
\nb. Wet Face Wipes.
\nc. Bed and Bath Towels.
\nd. Shampoo Towels.
\n9. Now we will discuss the above mentioned products one by one.
\n(A) Wet Baby Wipes
\nIt consist of Non-woven spun lace fabric of 40-60 grams per square made from 60-70% viscose (regenerated cellulose) fiber +30%-40% polyester fiber of standard size 150 mm x 200 mm. Details of ingredients and functions a<\/p>\n
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\n(ii) And those consisting of wadding, felt and nonwoven impregnated, coated or covered with perfume or cosmetics fall under HS code 3307 and attracts 18% GST (Notification 41\/2017-Central Tax (Rate))
\nHence, there is no more scope left for further discussion over this issue and accordingly the “Wet Face Wipes” is to be classified as under the HSN code- 3307 and as on date it will attract 18% GST rats.
\n(B) Wet Face Wipes
\nSimilar to the product “Wet Baby Wipes”, mentioned above at serial (A), the product in question namely “Wet Face Wipes” consists of Non-woven spun lace fabric of 40-60 grams per square made from 60-70% viscose(regenerated cellulose)fiber +30%-40% polyester fiber of standard size 150 mm x 200 mm. Details <\/p>\n
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\nHence, as discussed supra, wet face wipes will fall under HSN code-3307 and as on date it will attract GST @ 18%..
\n(C) Bed and Bath Towels
\nUnder this category in respect of the composition of materials, size and use of the goods details provided by the applicant is reproduced hereunder as:
\nIt consist of Non-woven spun lace fabric of 40-60 grams per square meter of standard size 300 mm x 240 mm. Details of ingredients and functions are as follows:
\nTABLE-C
\nIngredients
\nFunctions
\nAqua
\nSolvent
\nChlorhexidine Gluconate 20%
\nAnti- bacterial
\nPropylene glycol
\nSolvent
\nEuxyl K703
\nPreservatives
\nGlycerine
\nMoisturiser
\nPolysorbate-20
\nSolubiliser
\nDehytone Dc
\nCleansing Agent
\nCocamidopropylbetaine
\nCleansing Agent
\nAlolvera Gel
\nSkin Conditioner
\nDc-193
\nSkin Conditioner
\nPeg-40 Hydrogenated Castor oil
\nSolubiliser
\nSodium Gluconate
\nChelating Agent
\nFragrance
\nFragrance
\nCitric Acid
\nBuffering Agent
\nThe basic function <\/p>\n
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\n 3307- Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations depilatories and other perfumery cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties; such as Pre-shave, shaving or after-shave Preparations, Shaving cream, Personal deodorants and antiperspirants”
\n(ii) Classification under Chapter 34
\n340130- Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap [paper, wadding felt and nonwovens, impregnated, coated or covered with soap or detergent]”
\n“3402- Organic surface active agents (other than soap), surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not contai<\/p>\n
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\nThe basic fundamental principle of classification is guided by the Schedule of Tariff in the section notes and tariff notes. The description in each of the Chapters is the basic criteria for the purpose of classification. Now we take the issue as under:
\n3307: The Chapter note 4 in chapter 33 provides the expression cosmetic or toilet preparations” m heading 3307 applies, inter alia, to the, wadding felt and nonwovens, impregnated, coated or covered with perfume or cosmetics. Further Chapter note 3 of Chapter 33 indicates that terms of heading Nos. 33.03 to 33.07 apply, inter-alia, to products whether or not mixed (other than aqueous distillates and aqueous solutions of essentials oils), suit<\/p>\n
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\nOn a clear look of the items in the above headings, we note that classification of an item has to be under the heading of those items where it can be placed and can find a most suitable heading. Accordingly we find that product viz “bed and bath towel' merit classification in Chapter heading 3307 in as much as the other chapter headings (supra) do not give 'Bed and Bath Towels” its essential character i.e. ' cleaning and bathing” and the said product also covered in chapter note 4 of Chapter 33, Further, the basic nature and working of the product “Bed and Bath wipes” is almost the same as that of wet face wipes i.e. gently cleaning the skin by removing the dirt and moistening it , The said product is also impregnated in the form of lotion over the non-woven fabric. The rate of GST as on date is 18%.
\n(D) Shampoo towels
\nFor this category, the composition of materials, size and use of the goods provided by the applicant is repro<\/p>\n
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\n“(i) The Heading 33.05 covers “preparations for use on the hair”. Coconut oil is not a preparation for use on the hair. It is fixed vegetable oil capable of being used as cooking medium (or for other purposes including for application on the hair). In the absence of any proof that it is specially prepared for use on the hair or any label\/literature\/indications on the containers to that effect, the subject goods cannot be classified under heading 3305 simply because they were packed in small containers and applied by some sections of the society on the hair.
\n(ii) Coconut oil, whether pure or refined and whether packed in small or large containers merits classification under Heading 1503.
\n(iii) Only if the containers bear labels\/literatures etc. indicating that it is meant for ap<\/p>\n
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