In Re: Senthilkumar Thilagavathy [M\/s. JVS Tex]
GST
2019 (2) TMI 188 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2019 (21) G. S. T. L. 226 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 28-11-2018
Order No. 20\/AAR\/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER
\nNote : 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.
\nAt 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 a refer<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n hey manufacture Stick-Bags \/ Wedding Gift Bags \/ Packing Bags made of Non-woven Fabrics of Polypropylene \/ 100% Cotton (Grey Fabrics); Their bags are mainly purchased by the Show Rooms (Cars, Bikes, Vehicle Parts and Spectacles), Textile Shops, Silk Emporiums, Jewellery Shops, Retail Outlets of Commercial products etc. for the purpose of packing of their products to the ultimate customers.; They are bags of a kind used for the packing of goods commonly called as, 'Re-usable Shopping Bags, Drawstring Gift Bags, Garment Bags, etc.'; The major raw material for the manufacture of the said bags is Non-woven Fabrics falling under heading 5603\/ 'grey fabrics\/woven fabrics of 100% cotton falling under heading 5208 of first schedule to Customs Tariff Act 1975.; The said bags are manufactured through the processes of cutting, printing (either screen or off-set), sewing and handle fixing (either sticks or same material). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rs, whether or not padded).” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n records. The Classification of the Bags and the applicability of the Actual Rate \/ Heading is the issue to be discussed and clarified. 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 according to requirements of customers (either screen or off-set), stitch into bags which are used in Show Rooms (Cars, Bikes, Vehicle Parts and Spectacles), Textile Shops, Silk Emporiums, Jewellery Shops, Retail Outlets of Commercial products etc. for the purpose of packing their products to the ultimate customers. They are bags of a kind used for the packing of goods commonly called as Re-usable Shopping Bags, Drawstring Gift Gags, Garment Bags. The Bags have handles made out of stick or same materials. The purchase Invoices indicate purchase of Non-woven Fabrics and plain Cotton cloth. It is seen in the Sale Invoices that the Applicant is variously describing them as “Non-woven Bags”, “Cloth <\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 10 10 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Customers are put in these Bags and given to Customers to carry \/take away from the shops. These bags are not used for packing, but for ease of carrying being in the nature of Shopping Bags. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or shopping bags are covered in the Customs Tariff under CCTH 420222 depending on the material they are made up of. Shopping bags made of cotton are classified under CTH 42022220 and those made of non-woven fabrics are classifiable under CTH 42022210. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ng-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than handbags and shopping bags, of cotton or jute]” shall be substituted: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Senthilkumar Thilagavathy [M\/s. JVS Tex]GST2019 (2) TMI 188 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2019 (21) G. S. T. L. 226 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, TAMILNADU – AARDated:- 28-11-2018Order No. 20\/AAR\/2018 GSTMS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER Note : Any Appeal against the … Continue reading “In Re: Senthilkumar Thilagavathy [M\/s. JVS Tex]”<\/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-16546","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16546","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=16546"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16546\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2.2 The Applicant has further stated that the classification of<\/p>\n
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\nAccordingly, the said 'Bags made of Non-woven Fabrics of Polypropylene are rightly classifiable under Tariff item No. 6305 33 00, as 'Sacks and Bags, of a kind used for packing of goods, of man-made textile materials, of Polypropylene strip or the like and Bags made of cotton” are rightly classifiable under Tariff Item No.6305 20 00 as Sacks and Bags, of a kind used for packing of goods, of Cotton respectively. The above said classification under the Customs Tariff is aligned with the HSN Code and it appears both in Schedule I and Schedule II of Notification No.01\/2017 Central Tax (Rate) dated 28.06.2017 as amended and G.O. Ms. 157 dated 14.11.2017 of the Government of Tamilnadu the rate of tax is levied based on the value of the product, i.e., @ 2.5% – for value not exceeding Rs. 1000 per piece and @ 6%- for sale value exceeding Rs. 1000 per piece. In the present case, the sale value of 'Bags made of Non-woven Fabrics of Polypropylene\/woven fa<\/p>\n
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\n Jute bagging for raw cotton
\nkg.
\n25%
\n–
\n6305 10 20
\n Jute corn (grains) sacks
\nkg.
\n25%
\n–
\n6305 10 30
\n Jute hessian bags
\nkI-
\n25%
\n–
\n6305 10 40
\n Jute sacking bags
\nkg.
\n25%
\n_
\n6305 10 50
\n Jute wool sacks
\nkg.
\n25%
\n–
\n6305 10 60
\n Plastic coated or paper cum polythene lined jute bags and sacks
\nkg.
\n25%
\n–
\n6305 10 70
\n Paper laminated hessian jute
\nkg.
\n25%
\n–
\n6305 10 \ud83d\ude2f
\n Jute soil savers
\nkg.
\n25%
\n–
\n6305 10 90
\n Other
\nkg.
\n25%
\n–
\n6305 20 00
\n– Of cotton
\nkg.
\n25%
\n–
\n
\n– Of man-made textile materials :
\n
\n
\n
\n6305 32 00
\n Flexible intermediate bulk containers
\nkg.
\n25%
\n–
\n6305 33 00
\n Other, of polyethylene or polypropylene strip or the like
\nkg-
\n25%
\n–
\n6305 39 00
\n Other
\nkg.
\n25%
\n–
\n6305 90 00
\n– Of other textile materials
\nkg.
\n25%
\n–
\n6306
\nTARPAULINE AWNINGS AND SUNBLINDS: TENTS
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\n
\n
\nHSN explanatory Notes to chapter 6305 states:
\nThis heading covers textile sacks and bags of a kind normally used for the packi<\/p>\n
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\nChapter Heading 4202:
\n4202
\nTrunks, suit-cases, vanity-cases, executive- cases, BRIEF-CASES, SCHOOL SATCHELS, SPECTACLE CASES, BINOCULAR CASES, CAMERA CASES, MUSICAL INSTRUMENT CASES, GUN CASES, HOLSTERS AND SIMILAR CONTAINERS; TRAVELLING-BAGS, INSULATED FOOD OR BEVERAGES BAGS, TOILET BAGS, RUCKSACKS, HANDBAGS, SHOPPING-BAGS, WALLETS, PURSES, MAP-CASES, CIGARETTE-CASES, TOBACCO-POUCHES, TOOL BAGS, SPORTS BAGS, BOTTLE-CASES, JEWELLERY BOXES, POWDER-BOXES, CUTLERY CASES AND SIMILAR CONTAINERS, OF LEATHER OR OF COMPOSITION LEATHER, OF SHEETING OF PLASTICS, OF TEXTILE MATERLALS, OF VULCANISED FIBRE OR OF PAPERBOARD, OR WHOLLY OR MAINLY COVERED WITH SUCH MATERLALS OR WITH PAPER
\n
\n
\n
\n
\n– Trunk's, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels and s<\/p>\n
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\n5.3 Having decided the classification, the next to be answered is the applicable rate of tax. Non-woven and cotton carry bags supplied by the Applicant were taxable to 9% CGST and 9% SGST as per SI no 126 and 127 of Schedule III of Notification No. 01\/2017-CT (Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)\/CTR\/532(d-4)\/2017 as amended respectively.
\nThe relevant entries are found in Schedule III attracting 9% tax as given under:
\n124.
\n4202
\nSchool satchels and bags other than of leather or composition leather
\n125.
\n4202 12 10
\nToilet cases
\n126.
\n4202 22 10
\nHand bags and shopping bags, of artificial plastic material
\n127.
\n4202 22 20
\nHand bags and shopping bags, of cotton
\n128.
\n4202 22 30
\nHand bags and shop<\/p>\n
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\n(xli) after S. No. 124 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely: –
\n“124A
\n4203
\nArticles of apparel and clothing accessories, of leather or of composition leather [other than gloves specially designed for use in sports]
\n124B
\n4205
\nOther articles of leather or of composition leather
\n124C
\n4206
\nArticles of gut (other than silk-worm gut), of goldbeater's skin, of bladders or of tendons”;
\n(xlii) S. No. 125, 126, 127, 128, <\/p>\n
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