Wet wipes classification under heading 3307 prevails when the product functions as a cleansing wipe, not a medicament.

Wet wipes made of non-woven fabric impregnated with cleansing and antiseptic ingredients are classified by their essential character and function. Because the product was used for wiping and external cleansing of the skin, and not for internal administration or bodily absorption as contemplated by heading 3004, it falls under heading 3307 as a nonwoven impregnated with cosmetic or toilet preparations. The ruling also states that GST follows the notified rate for heading 3307, with 14% CGST and 14% SGST up to 14.11.2017, and 9% CGST and 9% SGST from 15.11.2017.

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Issues: (i) Whether the product described as "Wet Wipes" is classifiable under heading 3004 as a medicament or under heading 3307 as a nonwoven impregnated with cosmetic or toilet preparations. (ii) What rate of GST applies to the product if classifiable under heading 3307.

Issue (i): Whether the product described as "Wet Wipes" is classifiable under heading 3004 as a medicament or under heading 3307 as a nonwoven impregnated with cosmetic or toilet preparations.

Analysis: The classification was determined by applying the tariff scheme, the Section and Chapter Notes, the HSN explanatory notes, and the CBIC clarification on wipes. The product consisted of non-woven fabric used as a carrying medium and was impregnated with chlorhexidine gluconate, glycerin, menthol, allantoin, fragrance, and water. Its function was wiping and external cleansing of the skin, not administration into or absorption by the body in the manner contemplated by heading 3004. The product also did not answer the description of sanitary towels or similar absorbent articles under heading 9619. In the light of the explanatory notes and the circular on wipes, the essential character of the goods was found to fall within heading 3307 as nonwoven material impregnated with cosmetic or toilet preparations.

Conclusion: The product is classifiable under heading 3307 90 90 and not under heading 3004.

Issue (ii): What rate of GST applies to the product if classifiable under heading 3307.

Analysis: Once classified under heading 3307 90 90, the applicable rate followed the tariff entry in Notification No. 01/2017-C.T. (Rate) and the corresponding State notification. The ruling noted the rate structure under Schedule IV up to 14.11.2017 and the amended position under Schedule III from 15.11.2017.

Conclusion: The applicable tax rate is 14% CGST and 14% SGST up to 14.11.2017, and 9% CGST and 9% SGST from 15.11.2017.

Final Conclusion: The ruling settled the product classification against medicament treatment and confirmed GST liability under the tariff entry for wipes classified in heading 3307, with the applicable rate varying according to the notified effective dates.

Ratio Decidendi: For tariff purposes, a product made of nonwoven fabric impregnated with cleansing or antiseptic ingredients is classified according to its essential character and function; where it is used as a wipe and not as a medicament for internal administration or bodily absorption, heading 3307 applies rather than heading 3004.

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