Fibreboard classification for rice husk composite board confirmed under Chapter 44, with GST applied at the fibreboard rate.

Rice husk based natural fibre composite board was treated as fibreboard under Chapter 44 because the fibres are first extracted, then bonded with calcium carbonate, additives and PVC resin, matching the HSN description and the way fibreboards are used. On that classification, the product fell under CTH 441193. The notification for rice husk board and fibre board manufactured from agricultural crop residues was considered for tax treatment, and the board was held to attract GST at 12%, split equally between CGST and SGST.

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Issues: Whether the rice husk based natural fibre composite board is classifiable under heading 441193 of Chapter 44 and, on such classification, what rate of GST applies.

Analysis: The product was found to be a fibreboard made from rice husk extracted into natural fibre and then mixed with calcium carbonate, processing additives and PVC resin used as a binding agent. Applying the tariff structure of Chapter 44 and the HSN explanatory notes, the product was held to answer the description of fibreboard rather than particle board, since the fibres are first extracted and then bonded, and the board is used like other fibreboards. On the accepted composition and use, the product was treated as falling under CTH 441193. The notification covering rice husk board and fibre board manufactured from agricultural crop residues was also considered for the applicable tax rate.

Conclusion: The board is classifiable under CTH 441193 and attracts GST at 12% comprising 6% CGST and 6% SGST.

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