TaxTMI 
TaxTMI 
2026 (3) TMI 966
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....ept for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the "GST Act". The issue raised by M/s PRADEEP VERMA, J-61, AGRO BLOCK, SGC KARNI INDUSTRIAL AREA, Bikaner-334004, Rajasthan (hereinafter "the applicant") is fit to pronounce advance ruling as they have deposited prescribed Fee under CGST Act and it falls under the ambit of the Section 97(2) given as under: (b) Applicability of a notification issued ....
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....m extrusion, bag conversion (cutting and sealing), quality inspection, packing, and dispatch. The finished goods are intended to be used as eco-friendly alternatives to conventional plastic carry bags and are capable of decomposing under composting conditions without leaving toxic or microplastic residue. 6. For the purpose of GST classification, the applicant classifies the said goods under HSN 39232990 under Chapter 39, being articles for the conveyance or packing of goods. 7. With effect from 22 September 2025, the Government has issued Notification No. 9/2025-Central Tax (Rate) dated 17-09-2025, whereby Entry 319 has been inserted in Schedule I, covering "Paper sacks/bags and bio-degradable bags" under Chapters 39 and 48, attracti....
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....ubmits that classification under a particular HSN does not by itself determine the applicable rate of tax. The applicable rate of GST is governed by the rate notifications issued under Section 9 of the CGST Act, 2017, read with the corresponding State GST Act. 5. With effect from 22 September 2025, the Government has issued Notification No. 9/2025-Central Tax (Rate) dated 17-09-2025, whereby Entry 319 has been inserted in Schedule I, covering "Paper sacks/bags and bio-degradable bags" under Chapters 39 and 48, taxable at the concessional rate of 5% GST. 6. The applicant submits that its products squarely fall within the scope of "bio-compostable bags" as specified in the said notification, since the bags are manufactured from certifie....
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....f Notification No. 9/2025-Central Tax (Rate) dated 17-09-2025, attracting GST @ 5% (2.5% CGST + 2.5% SGST) with effect from 22-09-2025. D. COMMENTS OF THE JURISDICTIONAL OFFICER:- Comments received from the Office of Assistant Commissioner, Central Tax, DIVISION-BIKANER CITY OPPOSITE CHETAN MAHDEV MANDIR, JAIPUR ROAD, BIKANER-334003, vide letter F.No.:- V(TECH)06/TECH.MATTERS/BKN-CITY/2025/2253, dated 16.01.2026 are as under: The applicant has sought advance ruling for classification of goods i.e. Biodegradable & Compostable carry bags. In ARA-01 application, the applicant has submitted that they are manufacturing bio-degradable and compostable carry bags made from compostable polymer materials including PBAT (Polybutylene....
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....the ambit of the Section 97(2) given as under: (b) Applicability of a notification issued under the provisions of this Act. 4. We find that the applicant has submitted a certificate issued by a notified agency indicating that the product is "compostable" and conforms to IS/ISO 17088 standards. However, the mere submission of such a certificate does not authorize this Authority to make any scientific, technical or environmental determination regarding the actual biodegradability or compostability of the product. 5. This Authority is constituted to decide matters falling within the scope of Section 97(2) of the CGST Act, namely classification of goods, applicability of notifications, admissibility of input tax credit, liability to pay t....