Classification of products for GST: Wet Baby Wipes, Face Wipes, Towels under HSN code 3307; Shampoo Towels under HSN code 3305.

The Authority for Advance Rulings, Uttarakhand, classified the products as follows: Wet Baby Wipes, Wet Face Wipes, and Bed and Bath Towels under HSN code 3307 with an 18% GST rate, and Shampoo Towels under HSN code 3305 with an 18% GST rate. This ruling was issued on 20th July 2018.

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Issues Involved:
1. Classification of Wet Baby Wipes under GST Schedule.
2. Classification of Wet Face Wipes under GST Schedule.
3. Classification of Bed and Bath Towels under GST Schedule.
4. Classification of Shampoo Towels under GST Schedule.

Issue-wise Detailed Analysis:

1. Classification of Wet Baby Wipes:
The applicant sought an advance ruling on the HSN classification and GST rates for Wet Baby Wipes. The product consists of non-woven spun lace fabric impregnated with various ingredients for cleaning and moisturizing the skin. The relevant GST Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017 classifies baby wipes under HSN code 3307, attracting a GST rate of 18%. The ruling confirmed that Wet Baby Wipes fall under HSN code 3307 and attract 18% GST.

2. Classification of Wet Face Wipes:
Similar to Wet Baby Wipes, Wet Face Wipes consist of non-woven spun lace fabric impregnated with ingredients for cleaning and moisturizing the skin. The ruling referenced the same GST notification, classifying Wet Face Wipes under HSN code 3307 with an 18% GST rate. The ruling confirmed that Wet Face Wipes fall under HSN code 3307 and attract 18% GST.

3. Classification of Bed and Bath Towels:
The applicant described Bed and Bath Towels as non-woven spun lace fabric impregnated with ingredients for cleaning and moisturizing the skin, primarily used for body cleansing. The ruling considered various chapters of the GST Tariff, including Chapters 33, 34, 48, and 56, and concluded that the primary function of the product is skin cleaning. The product was classified under HSN code 3307, as it is impregnated with cosmetics. The ruling confirmed that Bed and Bath Towels fall under HSN code 3307 and attract 18% GST.

4. Classification of Shampoo Towels:
Shampoo Towels consist of non-woven spun lace fabric impregnated with ingredients for cleaning and conditioning hair, suitable for bedridden or partially assisted individuals. The ruling referred to the Hon'ble Apex Court judgment in the case of Commissioner of Central Excise vs. Madhan Agro Industries (I) Pvt. Ltd., which emphasized that products meant for application on hair should be classified under Chapter 33. The ruling confirmed that Shampoo Towels fall under HSN code 3305 and attract 18% GST.

Conclusion:
The Authority for Advance Rulings, Uttarakhand, concluded that the correct classification and GST rates for the products are as follows:
- Wet Baby Wipes: HSN code 3307, GST rate 18%.
- Wet Face Wipes: HSN code 3307, GST rate 18%.
- Bed and Bath Towels: HSN code 3307, GST rate 18%.
- Shampoo Towels: HSN code 3305, GST rate 18%.

The ruling was pronounced on 20th July 2018.

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