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2021 (3) TMI 915 - AAR - GSTClassification of goods - PP Non-Woven Bags - whether PP Non-woven bags (made Raw materials - PP granules (HSN 39021000) which are used for manufacture of Non-woven fabrics (HSN 5603) which are further used for manufacture of PP Non-woven bags by stitching) classifiable under HSN 63059000 or HSN 39232990? - HELD THAT:- In the subject case, the applicant is manufacturing PP Non-woven bags, made from non-woven fabrics of HSN 5603 and is classifying the same as bags made of technical textiles under HS code 63053900 /63059000 and paying GST @ 5% and the raw materials used are PP Granule of HS code 39021000 - the goods/articles covered under Chapter 39 cannot be classified under any of the Chapters falling under Section XI. Consequently it is clear that articles of plastics specified under Chapter 39, even if woven, are not to be classified under any of the Chapters including Chapter 63 falling under Section XI. The item “Polypropylene Non-woven Bags” has to be classified under HSN code 39232990 and not to be classified under HSN code 63059000 and to be taxed at 18% not at 5%.
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