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2020 (3) TMI 294
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....ant) is registered under the GST Act with GSTIN 33BYOPP4690L1Z0. The applicant has sought Advance Ruling on the following question:- Whether the category of product "Non-woven PP Rice Bags / Sacks" falls under the classification of HSN 63053300 and its applicable of rate of tax is at 5%? The Applicant has submitted the copy of application in Form GST ARA - 01 and also 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 They are manufactures of sacks and bags of Non-woven Rice Bag. They purchase non-woven fabric rolls made of 100% polypropylene fiber which are classified under HSN Code 5603 and convert the same into sheets by cutting, printing and then manmade stitched in to bag. Such Nonwoven Rice Bags are mainly used for packing rice and food products of 5 Kg, 10Kg, 20Kg and 25Kg. They have stated that this product falls under head HSN Code 6305 3300 and liable to be taxed a 5% if the sale value falls below Rs. 1000/- and if the value is more than Rs. 1000/- it is liable to be taxed at 12% under GST Act. 3.1 The applicant was heard in person on 28.08.2019. They submi....
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.... of Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 and the applicable rate of CGST is 2.5% for the sale value not exceeding Rs. 1000/- per piece. 5.1 We have carefully considered the various submissions made by the applicant and the comments of the jurisdictional central Tax Officer. The applicant are manufacturers of polypropylene Non-woven Fabric Rice Bags meant for use as 'Rice Bags'. They purchase their raw material viz., Non-Woven Fabric Rolls [HSN : 5603] made of 100% Polypropylene Fibre usually in white colour, which are cut into pieces of desired sizes after printing various designs, logos required by their customers and are stitched into Bags. They are selling the non-woven Fabric Bags classifying under HSN : 6305 mainly to the rice suppliers and the bags of 5Kg,10Kg, 20Kg and 25Kg capacity are sold at the sale value not exceeding Rs, 1,000/- per piece and GST is paid. The issue for decision before us is the appropriate Rate of Tax and HSN code for Nonwoven Rice Bags manufactured by the applicant. 5.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 - Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean ....
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.... HSN is as follows: 63.05 - Sacks and bags, of a kind used for the packing of goods (+). 6305.10 - Of jute or of other textile bast fibres of heading 53.03 6305.20 - Of cotton - Of man-made textile materials : 6305.32 - - Flexible intermediate bulk containers 6305.33 - - Other, of polyethylene or polypropylene strip or the like 6305.39 - - Other 6305.90 - Of other textile materials This heading covers textile sacks and bags of a kind normally used for the packing of goods for transport, storage or sale. These articles, which vary in size and shape, include in particular flexible intermediate bulk containers, coal, grain, flour, potato, coffee or similar sacks, mail bags, and small bags of the kind used for sending samples of merchandise by post. The heading also includes such articles as tea sachets. Packing cloths which, after use as bale wrappings, are roughly or loosely stitched together at the edges, but which do not constitute finished or unfinished sacks or bags, are excluded (heading 63.07). 5.4 We find that CBIC vide i....
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....ply to materials regarded as textile materials of Section XI. 2. This Chapter does not cover:- (a) lubricating preparations of heading 2710 or 3403; (b) waxes of heading 2712 or 3404; ..............................................................; (p) goods of Section XI (textiles and textile articles); 3923 ARTICLES FOR THE CONVEYANCE OR PACKING OF GOODS, OF PLASTICS; STOPPERS, LIDS, CAPS AND OTHER CLOSURES, OF PLASTICS 3923 10 - Boxes, cases, crates and similar articles: .................................................................................... - Sacks and bags (including cones): 3923 21 00 -- Of polymers of ethylene 3923 29 -- Of other plastics: 3923 29 10 --- Of poly (vinyl chloride) 3923 29 90 --- Other 3923 ARTICLES FOR THE CONVEYANCE OR PACKING OF GOODS, OF PLASTICS; STOPPERS, LIDS, CAPS AND OTHER CLOSURES, OF PLASTICS 3923 10 - Boxes, cases, crates and similar articles: .................................................................. - Sacks and bags (including cones): 3923 21 00 ....
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....ecided the classification, the next issue to be decided is the applicable rate. The applicant has stated that their product non-woven fabric bag falls below Rs. 1000/- per piece. The description of the goods stood mentioned at S.No. 224 of Schedule I of Notification No. l/2017-C.T.(Rate) dated 28.06.2017 upto 30.09.2019 and therefore, the applicable rate of CGST is 2.5% and SGST is 2.5% upto 30.09.2019. Notification No. 14/2019-C.T.(Rate) dated 30.09.2019, amended the Notification No. 01/2017-C.T.Rate dated 28.06.2017 wherein the entry at S.No. 224 of Schedule I was amended to the effect that the said entry do not cover the goods of 6305 32 00, 6305 33 00, 6309 and further a new entry 80AA inserted in the Schedule-II of the Notification No. 01/2017-C.T.(Rate) dated 28.06.2017, which is as below: "80AA 3923 or 6305 Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods"; Therefore, the rate of product in hand is 6% CGST and 6% SGST effective from 30.09.2019. Further, Notification no. 27/2019-C.T.(Rate) dated 30.12.2019 amended the Notification no. 01/2017-C.T.(Rate) dated 28.06....