PVC raincoats classified as plastic articles under HSN 3926, not textile goods, for GST purposes.

PVC raincoats made from PVC sheets by cutting and fusion bonding are classifiable as plastic articles under HSN 3926, not as textile articles under HSN 6201. Chapter 62 applies to made-up articles of textile fabric, but a PVC sheet is neither woven fabric nor regarded in common parlance as textile material. As the product remains primarily an article of PVC and does not satisfy the conditions for textile classification, the specific GST entry for plastic raincoats under heading 3926 applies, attracting the rate prescribed for entry 111 of Schedule III to Notification No. 01/2017-Central Tax (Rate).

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Issues: Whether PVC raincoats are classifiable as textile articles under HSN 6201 or as plastic articles under HSN 3926, and the consequent GST rate applicable thereto.

Analysis: The product was found to be manufactured from PVC sheets by cutting and fusion bonding, resulting in a non-woven article. Chapter 62 applies to made-up articles of textile fabric, while Chapter 39 excludes goods of Section XI and materials regarded as textile materials only where the statutory conditions for textile classification are met. The Authority held that a PVC sheet is not a woven fabric and is not regarded in common parlance as textile material. The raincoat, though an apparel item in ordinary usage, remained primarily an article of PVC and therefore did not satisfy the requirements of Chapter 62. The Authority relied on the tariff scheme and the relevant GST notification, including the entry specifically covering plastic raincoats under heading 3926.

Conclusion: PVC raincoats are classifiable under HSN 3926 and attract GST at the rate prescribed for entry 111 of Schedule III to Notification No. 01/2017-Central Tax (Rate), namely 18%.

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