Classification of non-laminated HDPE/PP woven bags under heading 6305 attracts the applicable GST rate as textile articles.

Non-laminated HDPE/PP woven bags made from strips not exceeding 5 mm were classified under heading 6305, because the woven fabric was neither impregnated, coated, covered nor laminated and therefore remained within Section XI rather than being excluded to chapter 39. On that classification, the applicable GST rate was 2.5% CGST and 2.5% SGST. The ruling thus treated the goods as textile articles under heading 6305 and rejected classification under chapter 39.

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Issues: (i) Whether non-laminated HDPE/PP woven bags manufactured from strips of width not exceeding 5 mm are classifiable under heading 6305 of the Customs Tariff Act or under chapter 39; (ii) Whether such goods are liable to GST at 2.5% CGST and 2.5% SGST.

Issue (i): Whether non-laminated HDPE/PP woven bags manufactured from strips of width not exceeding 5 mm are classifiable under heading 6305 of the Customs Tariff Act or under chapter 39.

Analysis: The classification turned on the tariff notes governing Section XI and chapter 39. Goods made from fabric woven from HDPE/PP strips of an apparent width not exceeding 5 mm were examined against Note 1(g) and Note 1(h) to Section XI and Note 2(p) to Chapter 39. Since the bags were described as non-laminated and the woven fabric was neither impregnated, coated, covered, nor laminated, they were not excluded from Section XI. On that basis, the goods were treated as textile articles more specifically falling under heading 6305.

Conclusion: The goods are classifiable under heading 6305 of the Customs Tariff Act and not under chapter 39.

Issue (ii): Whether such goods are liable to GST at 2.5% CGST and 2.5% SGST.

Analysis: Once the goods were placed under the textile heading accepted by the Authority, the GST rate applicable to the subject goods followed the classification adopted for such tariff entry. The ruling expressly fixed the rate at 2.5% CGST and 2.5% SGST.

Conclusion: The applicant is liable to pay 2.5% CGST and 2.5% SGST on the subject goods.

Final Conclusion: The application succeeded, and the subject non-laminated HDPE/PP woven bags were held classifiable under heading 6305 with the stated GST rate.

Ratio Decidendi: Non-laminated woven bags made from HDPE/PP strips not exceeding 5 mm, where the woven fabric is neither impregnated, coated, covered, nor laminated, remain within Section XI and are classifiable as textile articles under heading 6305 rather than chapter 39.

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