TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Classification of Packaging Materials for GST: AAR Ruling on Tariff Codes, GST Rates</h1> <h3>In Re: M/s. TCPL Packaging Limited</h3> In Re: M/s. TCPL Packaging Limited - 2019 (27) G.S.T.L. 116 (A. A. R. - GST) Issues Involved:1. Classification and GST rate of packaging materials (cut to size blanks with corrugation and requisite creases, supplied in flat form).2. Classification and GST rate of printed materials in flat form (e.g., hanging cards, without creases and having corrugation).Issue-wise Detailed Analysis:1. Classification and GST Rate of Packaging Materials:The applicant, TCPL Packaging Limited, sought an advance ruling on whether packaging materials, specifically cut to size blanks with corrugation and requisite creases supplied in flat form, fall under Tariff Item Code 4819 and are subject to 12% GST. The applicant contended that these materials, although supplied flat, are ultimately used as cartons or boxes to hold goods and should be classified under Chapter Heading 4819, which pertains to cartons, boxes, and cases of corrugated paper or paperboard.The applicant referenced Rule 2(a) of the General Rules for the Interpretation of the Harmonised System, which states that incomplete or unfinished articles that have the essential character of the complete or finished article should be classified as such. The applicant argued that the transformation of the flat packaging materials into cartons or boxes is a simple process that does not require technical expertise or sophisticated machinery.The Authority for Advance Ruling (AAR) examined the samples provided and agreed with the applicant. The AAR noted that the essential character of the packaging materials remains as cartons or boxes to hold goods, even though some manual or mechanical activity is needed to achieve the final form. The AAR concluded that the packaging materials in flat form are classifiable under Tariff Item Code 4819 and subject to 12% GST.2. Classification and GST Rate of Printed Materials:The applicant also sought a ruling on the appropriate categorization and GST rate for printed materials in flat form, such as hanging cards, without creases but having corrugation. The applicant had been classifying these items under Chapter Heading 4823, which pertains to other paper, paperboard, cellulose wadding, and webs of cellulose fibers, cut to size or shape, and had been paying 18% GST.The AAR reviewed the samples and found that these items are indeed articles of paper cut to size or shape and do not fit the description of cartons or boxes. The AAR agreed with the applicant's classification under Chapter Heading 4823 and confirmed that these printed materials are subject to 18% GST.Conclusion:The AAR ruled that the packaging materials (cut to size blanks with corrugation and requisite creases, supplied in flat form) are classifiable under Tariff Item Code 4819 and subject to 12% GST. The printed materials in flat form (e.g., hanging cards, without creases and having corrugation) fall under Chapter Heading 4823 and are subject to 18% GST.
TaxTMI 
TaxTMI 
