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2020 (3) TMI 294 - AAR - GSTClassification of goods - Non-woven PP Rice Bags / Sacks - classified under the classification of HSN 63053300 or not? - rate of tax - HELD THAT:- It is clear from Chapter Note 1 to Chapter 39 that ‘The expression, however, does not apply to materials regarded as textile materials of Section XI. Therefore, plastics under Chapter 39 does not cover Non woven textile materials of CTH 5603 of which the articles in hand are made of - Further, as per para 7.5 of the CBIC clarification above, Non-laminated woven bags are to be classified as per the constituting material. There is no dispute that the raw material used by the applicant is a textile material classified under CTH 5603 as seen from the Purchase Invoice furnished by the applicant. The applicant manufactures non-woven fabric bags from the fabric roles classified under ‘5603’ and is used mainly for packing rice and food products for storage and sale. Thus applying the Explanation of HSN to Heading 6305, the product is classifiable under Chapter Heading 6305 3300. Applicable rate of tax - HELD THAT:- The applicable rate for the bag of value not exceeding ₹ 1000 per piece is 2.5% CGST as per SI.No. 224 of schedule I of Notification No 1/2017-C.T.(Rate) dated 28.06.2017 and 2.5% SGST as per S.No. 224 of Schedule-I of G.O.(Ms.) No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 upto 30.09.2019 and thereupon upto 31.12.2019, the applicable rate is 6% CGST as per SI.No. 80AA of Schedule II of Notification no. 01/2017-C.T(Rate) dated 28.06.2017 as amended and 6% SGST as per S.No. 80AA of Schedule-II of G.O. (Ms.) No. 62 dated 29.06.2017 as amended and effective 01.01.2020, the applicable rate is 9% CGST as per SI.No. 163B of Schedule III of Notification no. 01/2017-C.T.(Rate) date 28.06.2017 as amended by Notification no.27/2019-C.T.(Rate) dated 30.12.2019 and 9% SGST as per S.No. 163B of Schedule-Ill of G.O. (M.S.) No. 62 dated 29.06.2017 as amended.
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