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2021 (1) TMI 428 - AAR - GSTClassification of goods - rate of duty - Zip Roll (i.e. Slide Fasteners) - Finished Zippers - Sliders- benefit of N/N. 01/2017-Central Tax (Rate) dated 28.06.2017 as amended by the Notification No.18/2018-Central Tax (Rate) dated 26.07.2018 - HELD THAT:- The classification of goods under GST regime has to be done in accordance with the Customs Tariff Act, 1975, which is in turn based on Harmonised System of Nomenclature popularly known as ‘HSN’. The rules of interpretation, section notes and chapter notes as specified under the Customs Tariff Act, 1975 are also applicable for classification of Goods under GST regime. However, once an item is classified in accordance with the Customs Tariff Act, 1975, the rate of tax applicable would be arrived at on the basis of notifications issued under GST by respective governments - In the instant case, products in question are Zip Roll, Sliders and Finished Zipper. The Customs Tariff classifies the products, Slide Fasteners and Parts of Slide Fasteners under two different sub-headings, viz. Slide Fasteners under chapter sub-heading 9607.11/9607.19 and Parts thereof under chapter sub-heading 9607.20. Further under GST, the rate of tax is also separately prescribed for Slide Fasteners and Parts thereof. Hence, it is necessary to decide first whether these products are ‘Slide Fasteners’ or ‘Parts of slide fasteners’. It is found that the product, ‘Finished Zipper’ is supplied in cut length with sliders attached. The product “Finished Zipper” consists of two narrow strips of textile material. One edge of each strip is fitted with scoops of base metal (of metal, plastics etc.), which can be made to interlock by means of slider or runner. Thus, this a complete product, which can be construed as ‘Slide Fasteners’ - further, it is noted that the product ‘Zip Roll’ is supplied in continues length as per customer order or of normal length as per industrial specification. “Zip Rolls” are narrow strips of any length mounted with chain scoops and same are supplied without sliders/runners attached. Hence, this product falls under ‘Parts of slide fasteners” and cannot be classified as “Slide Fasteners”, as claimed by the applicant - slider shall be classified as ‘Parts of slide fasteners’ under Chapter heading 9607.20. Thus, the product, ‘Finished Zipper’ is to be classified as “Slide Fasteners” under Chapter heading 9607.11 and other products, viz. ‘Zip Roll’ and “Slider” are to be classified as ‘Parts of slide fasteners’under chapter heading No. 9607.20. Rate of GST leviable on “Slide Fasteners” and “Parts of slide fasteners” prevailing at different times - HELD THAT:- W.e.f. 01.10.2019, “Slide Fasteners” and “Parts of slide fasteners” will again attract single rate of GST i.e. 12% - the product, ‘Finished Zipper’ shall be classified as “Slide Fasteners” under Chapter heading 9607.11 and Other products, viz. ‘Zip Roll’ and “Slider” merit classification as ‘Parts of slide fasteners’ under chapter heading No. 9607.20. Accordingly, the product, ‘Finished Zipper’ is liable to GST @ 18% till 26.07.2018, @ 12% from 27.07.2018 to 30.09.2018 and @ 12% from 01.10.2019 onwards. Whereas, the other products, viz. ‘Zip Roll’ and “Slider” are liable to GST @ 18% till 30.09.2018 and @ 12% from 01.10.2019 onwards.
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