TaxTMI 
TaxTMI 
2019 (2) TMI 189
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....tion having registered office at No. 19-B, Meenakshi Nagar, 3rd Street, Villapuram, Madurai - 625 012 (hereinafter called the Applicant) is Registered under the GST Act, 2017 with Trade name SAVANI SCREEN and GSTIN 33CJOPS0399M1ZE. They have filed an Application Seeking Advance Ruling in form GST ARA-01. "Classification of Nonwoven and Cotton bags and the Rate of tax to be charged under the GST Act." The Applicant has submitted a copy of Challan evidencing payment of application fees of Rs. 5, 000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The Applicant manufactures Non-woven Bags and Cotton Bags. The basic raw material for Non-woven Bags is Non-woven Fabrics made up of "Polypropylene". They receive Poly-Propylene rolls of (size) 63" Width and also in customized sizes as per their requirements. The Non-woven fabric rolls are first cut into sheets of needed size, then the sheets are printed according to requirements of Customers such as designs, shop name and address, and finally stitched to finish goods. The price of the bags ranges between minimum Rs. 5.50 per bag and maximum Rs. 20 per bag. The size of the Non-woven Bags varies from....
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....s that the applicant is variously describing them as "Bags", "Shopping Bags" etc. of various sizes. 5. The Classification of the bags and the applicability of the Actual Rate / Heading is the issue to be discussed and clarified. From the various submissions of the applicant, it is evident that the applicant purchases non-woven fabric roll and cotton fabric, cut to size and on printing, stitch into bags. The sheets are printed according to requirements of Customers such as designs, shop name and address. The bags have handles made out of same materials or PVC sticks or Bamboo Sticks which are used as carry bags in Textile show rooms/Textile dealers, jewelry shops. The Applicant has sought the classification and has stated that 4202, 5603, 6305 are the competing Chapter Headings. 5.1 In terms of explanation (iii) and (iv) to Notification No. 1/2017 - Central Tax (Rate) dt. 28-06-2017, "Tariff item", "Sub-heading", "Heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the....
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....uch goods because of their very nature, being loose, flowing or in bulk etc, cannot be sold without packing by such bags. However, in the instant case, the Applicant has stated that the goods in question are carry bags. The bags have handles for carrying. Textiles or Jewellery etc. after they are purchased by the customers, are put in these bags and given to customers, to carry /take away from the shops. These bags are not used for packing but for ease of carrying being in the nature of shopping bags. Chapter Heading 4202: 4202 Trunks, suit-cases, vanity-cases, executive- cases, BRIEF-CASES, SCHOOL SATCHELS, SPECTACLE CASES, BINOCULAR CASES, CAMERA CASES, MUSICAL INSTRUMENT CASES, GUN CASES, HOLSTERS AND SIMILAR CONTAINERS; TRAVELLING-BAGS, INSULATED FOOD OR BEVERAGES BAGS, TOILET BAGS, RUCKSACKS, HANDBAGS, SHOPPING-BAGS, WALLETS, PURSES, MAP-CASES, CIGARETTE-CASES, TOBACCO-POUCHES, TOOL BAGS, SPORTS BAGS, BOTTLE-CASES, JEWELLERY BOXES, POWDER-BOXES, CUTLERY CASES AND SIMILAR CONTAINERS, OF LEATHER OR OF COMPOSITION LEATHER, OF SHEETING OF PLASTICS, OF TEXTILE MATERLALS, OF VULCANISED FIBRE OR OF PAPERBOARD, OR WHOLLY OR MAINLY COVERED WITH SUCH MATERLALS OR WITH PAPER ....
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.... Vanity bags 130. 4202 29 10 Handbags of other materials excluding a wicker work or basket work The said entries stands amended vide Notification No. 41/2017- C.T(Rate) dated 14.11.2017 effective from 15.11.2017. The Hand bags and Shopping bags made of cotton and jute were moved from schedule III to Schedule II attracting rate of tax of 6%-CGST. (B) in Schedule II -6%, - (xii) for S. Nos. 89, 90 and the entries relating thereto, the following shall be substituted, namely "89 4202 22 20 Hand bags and shopping bags, of cotton 90 4202 22 30 Hand bags and shopping bags, of jute"; and the entries at Schedule III from 124 to 130 were replaced as under: (C) in Schedule III-9%, - (xl) in S. No. 124. for the entry in column (3). the entry "Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle-cases, jewellery b....