Classification of 'PP Non-woven Bags' as Plastic Goods for Taxation under GST Law

The Authority classified 'PP Non-woven Bags' made from non-woven Polypropylene fabric as plastic goods under Sub Heading 3923 29. The bags are to be taxed at an 18% rate under specific notifications of the CGST and WBGST Acts, with the ruling considered valid unless declared void under relevant provisions of the GST Act.

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Issues: Classification and Rate of Tax Applicable on Polypropylene Non-Woven Bags under the CGST/WBGST Acts

Issue 1: Admissibility of Advance Ruling
The Applicant seeks a ruling on the classification and tax rate of Polypropylene Non-Woven Bags under the CGST/WBGST Acts. The Advance Ruling Authority finds the application admissible under relevant sections of the GST Act as the question raised has not been previously decided.

Issue 2: Classification of Goods
The Applicant claims that Polypropylene Non-Woven Bags are classifiable under Tariff Head 6305 90 00 of the GST Tariff. Various orders and articles are submitted to support this classification, including references to similar products in Kerala.

Issue 3: Manufacturing Process and Raw Materials
The Authority notes a lack of detailed information regarding the raw materials and manufacturing process of the bags. However, based on submitted articles and samples, it is inferred that the bags are made from Polypropylene granules bonded to form sheets and then stitched into bags.

Issue 4: Registration and Relevance of References
The Applicant's references to registrations and communications are deemed insufficient as specific details and copies are not provided. The relevance of certain communications is questioned due to lack of supporting documentation.

Issue 5: Comparison with Previous Ruling
The Applicant's product is compared to a previous ruling involving similar manufacturing processes and materials. Based on this comparison and the submitted sample, it is assumed that the bags are made from Polypropylene and classified as plastic goods.

Issue 6: Classification under GST Tariff
The Authority determines that the bags are not made from Polypropylene strips but sheets, leading to a classification under Sub-heading 3923 29 as plastic goods. This classification aligns with the nature of the manufacturing process and materials used.

Issue 7: Application of Previous Judgments
A judgment regarding the classification of HDPE bags as plastic goods is referenced to support the classification of Polypropylene Non-Woven Bags. The ruling concludes that bags made from Polypropylene sheets are to be classified as plastic goods under Chapter 39.

Issue 8: Final Ruling
The Authority rules that 'PP Non-woven Bags' made from non-woven Polypropylene fabric are to be classified as plastic goods under Sub Heading 3923 29 and taxed at an 18% rate under specific notifications of the CGST and WBGST Acts. This ruling is deemed valid unless declared void under relevant provisions of the GST Act.

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