Classification of Applicant's Products under Customs Tariff Act: GST Rates and Sub-Headings

The products manufactured by the applicant, including HDPE Tarpaulin, PE laminated fabrics, PP ropes, pondliner, vermibed, weed mat, and others, were classified under Chapter 39 of the Customs Tariff Act, specifically under sub-headings 39269099 and 39232990. The GST rates applicable were determined to be 18% for Grow bags and 28% (up to 14.11.2017) and 18% (from 15.11.2017 onwards) for all other products.

---

---

Issues Involved:

1. Classification of various products manufactured by the applicant.
2. Determination of the GST rate applicable to each product.

Detailed Analysis:

1. Classification of Various Products:

The applicant, M/s. Gujarat Raffia Industries Ltd., sought advance ruling on the classification of their products and the corresponding GST rates. The products include HDPE Tarpaulin, PE laminated fabrics, PP ropes, pondliner, vermibed, weed mat, wagon cover, fumigation cover, azolla beds, grow bags, agro shade nets, HDPE woven laminated fabrics, and PP/HDPE woven fabrics.

The applicant proposed HSN codes for these products, suggesting their classification under different chapters of the Customs Tariff Act, 1975. Specifically, they proposed classifications under sub-headings 54072090, 56074900, and 59039090, which correspond to textile and textile articles.

However, upon review, it was determined that the products are made from HDPE tapes, which are plastic materials. According to the First Schedule to the Customs Tariff Act, 1975, HDPE tapes and products made from them fall under Chapter 39, which covers plastics and articles thereof. The relevant sub-headings for classification were identified as follows:

- HDPE Tarpaulin: 39269099
- PE laminated fabric: 39269099
- PP ropes: 39269099
- Pondliner: 39269099
- Vermibed: 39269099
- Weed mat: 39269099
- Wagon cover: 39269099
- Fumigation cover: 39269099
- Azolla Bed: 39269099
- Grow bags: 39232990
- Agro shade net: 39269099
- HDPE woven laminated fabrics: 39269099
- PP/HDPE woven fabric: 39269099

The classification was based on the nature of the raw materials (HDPE granules) and the manufacturing process, which involves weaving HDPE tapes into fabrics, laminating them, and further processing.

2. Determination of GST Rate:

To determine the GST rate, the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017, as amended, was referred to. This notification specifies the GST rates applicable to various goods under different schedules.

- For products classified under sub-heading 3923 (Grow bags), the GST rate is 18% (9% SGST + 9% CGST).
- For products classified under sub-heading 3926 (all other products), the GST rate was initially 28% (14% SGST + 14% CGST) up to 14.11.2017, and 18% (9% SGST + 9% CGST) from 15.11.2017 onwards.

The applicable GST rates for each product are summarized as follows:

- HDPE Tarpaulin: 18%
- PE laminated fabric: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- PP ropes: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Pondliner: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Vermibed: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Weed mat: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Wagon cover: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Fumigation cover: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Azolla Bed: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- Grow bags: 18%
- Agro shade net: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- HDPE woven laminated fabrics: 28% up to 14.11.2017, 18% from 15.11.2017 onwards
- PP/HDPE woven fabric: 28% up to 14.11.2017, 18% from 15.11.2017 onwards

Conclusion:

The products manufactured by the applicant are classified under Chapter 39 of the Customs Tariff Act, 1975, specifically under sub-headings 39269099 and 39232990. The corresponding GST rates are 18% for Grow bags and 28% (up to 14.11.2017) and 18% (from 15.11.2017 onwards) for all other products.

---