Tariff classification of pallets and box pallets determines GST rate under the wood packing entry.

Pallets and box pallets were classified under HSN 4415 20 00 because the tariff entry for wood packing cases, boxes, crates and similar packings expressly includes pallets, box pallets and other load boards of wood. On that classification, the applicable GST rate was stated to be 6% under the Central Goods and Services Tax Act and 6% under the Karnataka Goods and Services Tax Act, as reflected in the relevant rate notifications. The stated principle is that goods are classified by the tariff description covering their essential commercial identity, and the tax rate then follows the applicable classification entry.

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Issues: Whether the commodity "pallets and box pallets" are classifiable under HSN 4415 20 00 and what rate of GST applies to them.

Analysis: The relevant tariff entry for HSN 4415 covers packing cases, boxes, crates, drums and similar packings of wood, including pallets, box pallets and other load boards of wood. On that basis, pallets and box pallets were found to fall under HSN 4415 20 00. The applicable rate entries in Notification No. 01/2017-Central Tax (Rate) and Notification No. 01/2017-State Tax (Rate) place the goods at 6% under each enactment.

Conclusion: The commodity "pallets and box pallets" is classifiable under HSN 4415 20 00 and attracts GST at 6% under the Central Goods and Services Tax Act and 6% under the Karnataka Goods and Services Tax Act.

Ratio Decidendi: Goods are to be classified according to the tariff description that specifically covers their essential commercial identity, and the tax rate follows the entry applicable to that tariff classification.

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