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2020 (8) TMI 637 - AAR - GSTClassification of goods - rate of GST - Silicone Insole - Heel Cushion - Whether Silicone Insole and Heel Cushion is classifiable under Tariff 64 at SI.No.225 under Schedule-I as “Footwear of sale value not exceeding ₹ 1000/per pair” of Notification No.01/2017-CT(R) dated 28.06.2017 as amended by Notification No.24/2018-CT(R) dated 31.12.2018? - HELD THAT:- Silicone Insoles & Silicone Heel Cushion are removable insoles and the primary purpose of insoles is to make shoes more comfortable to wear. The removable insoles that come in most shoes vary in type and material ranging from very simple thin cushioning to sophisticated multiple layered arch support inserts. The readymade removable insoles manufactured by the applicant are of different sizes that are compatible with shoe size. The insoles or heel cushions are not customised for correcting orthopaedic conditions that vary from patient to patient. They are of standard shape and size as that of the footwears in which they can be used. As such it cannot be considered as an orthopaedic appliance; i.e; footwear or a special insole designed to correct orthopaedic condition and which is made to measure or designed to fit either foot equally; mass produced and presented singly to fall under HSN 9021. The HSN 6406 covers “Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable in-soles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof”. The Silicone Insoles and Silicone Heel Cushion manufactured by the applicant are rightly classifiable under HSN 6406 as parts of footwear. The concessional rate of GST of 5% under Sl No. 225 of Schedule I of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 for footwear having retail sale price not exceeding ₹ 1000/- per pair is subject to the condition that such retail sale price is indelibly marked or embossed on the footwear itself. The products of the applicant namely; Silicone Insoles and Silicon Heel Cushion; being only parts of footwear do not qualify to be termed as footwear satisfying the prescribed condition to be eligible for the concessional rate of GST - they are not covered under Sl No. 225 of Schedule - I; but are covered under Sl No. 171 of Schedule III of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 18%.
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