Classification of Cotton Fusible Interlining Fabrics under GST Tariff

The Authority classified Fusible Interlining Fabrics of Cotton under HSN Code 5903 of the GST Tariff Act, 2017, based on the visibility of the coating on the fabric. The classification was determined after analyzing the manufacturing process and confirming the presence of the coating without the need for testing.

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Issues: Classification of Fusible Interlining Fabrics of Cotton under GST law

Issue 1: Classification under GST law
The application sought an advance ruling on whether Fusible Interlining Fabrics of Cotton (FIFC) should be classified under HSN Code 5903 or under chapter 52 based on the weightage of cotton in the fabrics. The Authority admitted the application under Section 97(2)(a) of the Act, allowing for classification of goods to be determined.

Issue 2: Submissions and Hearing
During the personal hearing, the applicant's representatives presented their case. The applicant classified the product under HSN 5903, applying 12% GST, while customers demanded classification under Chapter 52 with 5% GST. The applicant detailed the manufacturing process, emphasizing the cotton fabric with a powder dot coating process. The concerned officer confirmed the coating visibility on the fabric without the need for testing.

Issue 3: Legal Analysis
The relevant chapter note of CHAPTER 59 of the GST Tariff was examined. It was noted that fabrics falling under HSN 5903 are those where the impregnation, coating, or covering can be seen with the naked eye. Fabrics not meeting this criterion typically fall under other chapters. The applicant's admission and the officer's report confirmed the visibility of the coating, leading to the classification under Chapter 5903 of the GST Tariff Act, 2017.

Conclusion
The Authority ruled that Fusible Interlining Fabrics of Cotton should be classified under HSN Code 5903 of the GST Tariff Act, 2017.

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