PVC car floor mats classified under CTH 8708 as motor vehicle parts attracting 28% GST instead of plastic goods category

The AAR Gujarat ruled that PVC floor mats for cars supplied by the applicant are classifiable under CTH 8708 rather than CTH 3918. The Authority determined that these automotive floor mats do not fall within the exclusions for plastic goods under Chapter 39, despite the applicant's reliance on previous rulings. The goods attract 28% GST rate under the motor vehicle parts and accessories classification, rejecting the applicant's claim for classification under the lower-rated plastic goods category.

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Issues Involved:
1. Appropriate classification of PVC floor mats under GST.
2. Applicable rate of GST on PVC floor mats.

Summary:

Issue 1: Appropriate Classification of PVC Floor Mats under GST

The applicant, engaged in the manufacture and supply of PVC floor mats for cars, requested a ruling on the appropriate classification of these mats under GST. The applicant contended that the product should be classified under CTH 3918 as "floor coverings of plastic." The applicant referred to previous rulings, including M/s. Soft Turf and National Plastic Industries Ltd., where PVC carpet mats were classified under CTH 3918, and M/s. Stinzo Automotive (P) Ltd, where PVC floor mats were classified under 390410.

The Authority examined the manufacturing process and the composition of the PVC floor mats, which included PVC leather, PU foam, XLPE foam, and a heel pad. They noted that CTH 390410 covers "Poly vinyl chloride, not mixed with any other substances," which does not apply to the applicant's product. Furthermore, the Authority referred to Chapter 39, which covers "Plastics and articles thereof," and concluded that the applicant's product does not fall under CTH 3904 as it is not in primary form.

The Authority also considered whether the product could be classified under CTH 5703 or 8708. They noted that CTH 5703 covers "Carpets and other textile floor coverings," which was not applicable as the applicant's product is not made of textile materials. Instead, the Authority found that CTH 8708, which covers "Parts and accessories of the motor vehicles," was more appropriate. The product is suitable for use solely or principally with motor vehicles, fulfilling the conditions of CTH 8708.

Issue 2: Applicable Rate of GST on PVC Floor Mats

The Authority ruled that the PVC floor mats for use in cars supplied by the applicant are classifiable under CTH 8708. Consequently, the applicable rate of GST would be 28%, comprising 14% each of CGST and SGST.

Ruling:

The impugned goods, i.e., PVC floor mats for use in cars supplied by the applicant, are classifiable under CTH 8708, and the applicable rate of GST would be 28% (14% CGST and 14% SGST).

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