TaxTMI 
TaxTMI 
2026 (4) TMI 1566
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....xcept 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 SUNITA KOHLI, F-274, INDUSTRIAL PLOT, CHOPANKI, BHIWADI-301019, ALWAR, 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: (a) classification of goods and/or services or....
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....r 3923 or paper articles placed in higher schedules. The exact 8 digit HSN may be determined based on material composition, size, and use, but the rate remains 5% by virtue of the specific notification entry. d) Presently, similar non-biodegradable/compostable plastic bags are generally classified under HSN 39232990 (Articles for the conveyance or packing of goods, of plastics). e) Pursuant to Notification No. 9/2025-Central Tax (Rate) dated 17-Sep-2025, effective 22-Sep-2025, "Paper Sacks/Bags and bio-degradable bags" are specified against Chapters 39, 48 in Schedule I (CGST 2.5%), yielding 5% GST, copy enclose. f) The Applicant's products are biodegradable as per (standards/certifications-attach test reports) and are suppl....
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.... certificates. Therefore, these bags are environment-friendly substitutes for plastic carry bags, fully aligned with the intent of Government policy to promote biodegradable packing materials. We have obtained a certificate from CIPET (Centre for Skilling and Technical Support - CSTS), Department of chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, Government of India. 4. Legislative Intent and Environmental Objective The concessional rate aims to incentive biodegradable alternatives and reduce single-use plastic pollution. The applicant's product directly supports this objective and must therefore receive the concessional rate benefit. 5. No Contradiction or Overlap with Other Entries The entry for biodeg....
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....al hearing. They reiterated the submission already made by them. F. DISCUSSIONS AND FINDINGS 1. We have carefully examined the statement of facts, the application filed by the applicant, the submissions made during the hearing, and the comments from the jurisdictional Tax Authority. We also considered the issues involved for which the advance ruling is sought, along with other relevant facts. 2. The applicant M/s SKP Enterprises, a proprietorship concern in the name of Mrs. Sunita Kohli, F-274, INDUSTRIAL PLOT, CHOPANKI, BHIWADI-301019, ALWAR, Rajasthan, and is registered with the GST department having GSTIN 08AKUPK9470G1ZG. The applicant is engaged in the manufacturing and selling of packing material i.e. carrying bag of various t....
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....ompostable plastics, are classifiable under Chapter 39 - Plastics and articles thereof, specifically under heading 3923, being articles for the conveyance or packing of goods. Furthermore, if the bags are manufactured from paper, they are classifiable under Chapter 48 - Paper and paperboard; articles of paper pulp, of paper or of paperboard. This classification is independent of whether the material is biodegradable or not. 8. We further observe that Entry No. 319 of Schedule I to Notification No. 9/2025-Central Tax (Rate) dated 17.09.2025 provides a concessional GST rate of 5% for "Paper Sacks/Bags and bio-degradable bags" under Chapters 39 and 48. The concessional rate is therefore conditional in nature and applies only if the goods su....