In Re: Balu Ramamoorthy Sekar Proprietor of M\/s Savani Screens
GST
2019 (2) TMI 189 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMI
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 28-11-2018
Order No. 19\/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 reference to the same provisi<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ments. The Non-woven fabric rolls are first cut into sheets of needed size, then the sheets are printed according to requirements of Customers such as designs, shop name and address, and finally stitched to finish goods. The price of the bags ranges between minimum Rs. 5.50 per bag and maximum Rs. 20 per bag. The size of the Non-woven Bags varies from 8″x10″ (Minimum) and 21″x19″ (Maximum). These bags are wholly and exclusively supplied to Textile show rooms\/Textile dealers, Jewelry shops and used for packing of their products. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n bags while selling the textiles. They also furnished copies of purchase and sales invoices relating to Pre-GST and Post-GST regime for perusal. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n First Schedule shall be applied for the interpretation and classification of goods. Accordingly, the competing headings are examined as under: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n materials are used for packing the goods which are then put up for sale, transport or storage. That is such goods because of their very nature, being loose, flowing or in bulk etc, cannot be sold without packing by such bags. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 02 22 20 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n bags, of cotton = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Balu Ramamoorthy Sekar Proprietor of M\/s Savani ScreensGST2019 (2) TMI 189 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMIAUTHORITY FOR ADVANCE RULING, TAMILNADU – AARDated:- 28-11-2018Order No. 19\/AAR\/2018 GSTMS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER Note : Any Appeal against the Advance Ruling order shall be filed before the … Continue reading “In Re: Balu Ramamoorthy Sekar Proprietor of M\/s Savani Screens”<\/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-16547","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16547","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=16547"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/16547\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2.2 In respect of manufacturing of Cotton bags, the Applicant have stated that the basic raw material is “Cotton Cloth” (mainly GADA Cloth) received in bundles of standard size of 100 meters. They are cut, printed and stitched according to the requirements of the customers. The size of the Cotton Cloth Bags varies from (Minimum) 12″x15″ to (Maximum) 16″x20″. These bags are wholly and exclusively supplied to Textile show rooms\/Textile dealers, jewelry shops used<\/p>\n
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\n4. Contentions of the Applicant was examined with connected samples and sale and purchase invoices submitted. It is seen from samples that the raw materials are non-woven and cotton fabric and the finished products made of these raw materials are bags with various logos, names, addresses of textile and jewelry shops printed on them. The bags have handles made of either same material or PVC or bamboo sticks. They are carry bags which are given to customers of these shops. 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 “Bags”, “Shopping Bags” etc. of various sizes.
\n5. 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 t<\/p>\n
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\n5.2 The applicant's contention is that the products are to be classified under 6305.
\nChapter 6305:
\n6305
\nSacks and bags, of a kind used for the PACKING OF GOODS
\n
\n
\n
\n6305 10
\n– Of jute or of other textile bast fibres of heading 5303 :
\n
\n
\n
\n6305 10 10
\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 \n<\/p>\n
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\nHowever, in the instant case, the Applicant has stated that the goods in question are carry bags. The bags have handles for carrying. Textiles or Jewellery etc. after they are purchased by the 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.
\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-POUC<\/p>\n
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\n Hand-bags and shopping bags, of cotton
\nu
\n10%
\n
\n4202 22 30
\n Hand-bags and shopping bags, of Jute
\nu
\n10%
\n
\n4202 22 40
\n Vanity-bags
\nu
\n10%
\n
\n4202 22 90
\n Other
\nu
\n10%
\n
\n4202 29
\n Other :
\n
\n
\n
\n4202 29 10
\n Hand bags of other materials excluding wicker-work or basket work
\nu
\n10%
\n
\n4202 29 90
\n Other
\nu
\n10%
\n
\nFrom the above, it is seen carry bags 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.
\n5.3 Having decided the classification, the next to be answered is the applicable rate of tax.
\nNon-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 29.06.201<\/p>\n
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\n90
\n4202 22 30
\nHand bags and shopping bags, of jute”;
\nand the entries at Schedule III from 124 to 130 were replaced as under:
\n(C) in Schedule III-9%, –
\n(xl) in S. No. 124. for the entry in column (3). the entry “Trunks, 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, 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:
\n(xli) after S. No. 124 and the entries relating thereto<\/p>\n
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