2023 (3) TMI 787 - AAR - GST

Classification of goods - rate of GST - supply of PVC floor mats (Cars) - whether the goods supplied by the applicant would merit classification under CTH 3918 or 8708? - HELD THAT - Going by the tariff heading section notes chapter notes HSN notes already reproduced it is opined that the goods merit classification under CTH 8708 - What is therefore excluded is similar goods as mentioned above of plastics falling under Chapter 39. As is evident PVC floor mats for four wheel motor vehicles does not fall in the exclusion - Again it is evident that the floor mats for four wheel vehicles cars made of poly vinyl chloride PVC supplied by the applicant does not fall within the exclusion. The applicant s claim that his supply would fall under CTH 3918 by relying on the rulings of IN RE M/S. SOFT TURF 2021 (7) TMI 752 - APPELLATE AUTHORITY FOR ADVANCE RULING KERALA IN RE NATIONAL PLASTIC INDUSTRIES LIMITED 2018 (8) TMI 1650 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA is not legally tenable. Thus the impugned goods i.e. PVC floor mats for use in cars supplied by the applicant is classifiable under CTH 8708 applicable rate of GST would be 28%

Summary

Issues Involved:
1. Appropriate classification of PVC floor mats under GST.
2. Applicable rate of GST on PVC floor mats.

Summary:

Issue 1: Appropriate Classification of PVC Floor Mats under GST

The applicant, engaged in the manufacture and supply of PVC floor mats for cars, requested a ruling on the appropriate classification of these mats under GST. The applicant contended that the product should be classified under CTH 3918 as "floor coverings of plastic." The applicant referred to previous rulings, including M/s. Soft Turf and National Plastic Industries Ltd., where PVC carpet mats were classified under CTH 3918, and M/s. Stinzo Automotive (P) Ltd, where PVC floor mats were classified under 390410.

The Authority examined the manufacturing process and the composition of the PVC floor mats, which included PVC leather, PU foam, XLPE foam, and a heel pad. They noted that CTH 390410 covers "Poly vinyl chloride, not mixed with any other substances," which does not apply to the applicant's product. Furthermore, the Authority referred to Chapter 39, which covers "Plastics and articles thereof," and concluded that the applicant's product does not fall under CTH 3904 as it is not in primary form.

The Authority also considered whether the product could be classified under CTH 5703 or 8708. They noted that CTH 5703 covers "Carpets and other textile floor coverings," which was not applicable as the applicant's product is not made of textile materials. Instead, the Authority found that CTH 8708, which covers "Parts and accessories of the motor vehicles," was more appropriate. The product is suitable for use solely or principally with motor vehicles, fulfilling the conditions of CTH 8708.

Issue 2: Applicable Rate of GST on PVC Floor Mats

The Authority ruled that the PVC floor mats for use in cars supplied by the applicant are classifiable under CTH 8708. Consequently, the applicable rate of GST would be 28%, comprising 14% each of CGST and SGST.

Ruling:

The impugned goods, i.e., PVC floor mats for use in cars supplied by the applicant, are classifiable under CTH 8708, and the applicable rate of GST would be 28% (14% CGST and 14% SGST).