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2019 (1) TMI 1021 - AAR - GSTClassification of goods - rate of tax - Tile Adhesive - Tile Grout - Whether the two categories of products will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017,-Central Taxes (Rate) dated 28.06.2017 liable to CGST at 14% or Entry 97 of Schedule III of Notification No. 1/2017- Central Taxes (Rate) liable to CGST at 9%? Held that:- The applicant in their submissions have mentioned that the concerned products are non-refractory chemical-based preparation. Now it is seen that non-refractory preparations are covered under Chapter 3214 - resort shall be made the Explanatory Notes of Harmonized System of Nomenclature published by the World Customs Organization, Brussels (HSN Explanatory Notes) to interpret the above relevant Sub-headings. The group of Non refractory surfacing preparations which fall under Chapter 32.14 includes “preparations in powder form based on quartz and cement with small quantities of added plasticizers, used for instance, after adding water, for setting wall or floor tiles.”. The polymers used in the above mentioned products acts as plasticizers. As mentioned in their application the product Tile Adhesive mentioned by them are specifically used for setting tiles, whether on floor, walls or other tiles, etc and therefore it is apparent that their products would be classifiable under Chap. 32 and not Chap 38. Tile grout is compound used as joint filler between tiles. This product is also used for setting the wall/ floor tiles because the same is used between two tiles as an adhesive by way of filling the gap between two tiles so that the tiles become attached to each other. Ruling:- The products in question will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017-Central Taxes (Rate) dated 28.06.2017 liable to GST @ 28% (14% each of CGST and SGST).
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