TaxTMI 
TaxTMI 
2026 (9) TMI 526
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.... At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like manner except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth, for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant, Radha Paper Agencies, is engaged in the business of trading various types of paper falling under Chapter 48 of the Customs Tariff. The applicant deals, inter alia, in uncoated paper classifiable under HSN 4802 and has sought an advance ruling on the applicable rate of GST on such goods in view of the amendments brought about by Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025. The applicant seeks clarification as to whether uncoated paper supplied by it qualifies for exemption when used for manufacture of exercise books, graph b....
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....tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 1.5 In our view, the question placed under serial no. (A) is covered by clause (e) and questions in serial nos. (D) and (F) are covered by clause (b) of Section 97(2). Questions placed under serial nos. (B), (C) and (E) may primarily appear to be covered by clause (b) of Section 97(2). However, upon deeper analysis, it is evident that the relevant questions fall outside the scope of the referred notification, i.e., Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025. The said notification does not refer to the subject matter of the questions under serial nos. (B), (C), and (E). This authority cannot discuss anything not referred to in any notification referenced in the questions. This authority cannot go beyond the limits of any notification. We are of the opinion that the question of applicability of a notification cannot be stretched to an extent that calls for import....
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....er supplied for any purpose other than exercise book manufacturing is procured and supplied on payment of GST at the applicable rate of 18 per cent. 2.3 The Applicant submits that prior to the amendment brought about by Notification No. 10/2025-Central Tax (Rate), all supplies of uncoated paper falling under HSN 4802 attracted a uniform GST rate irrespective of the purpose for which the paper was ultimately used. According to the Applicant, there was no end-use-based classification before the issuance of the Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, and therefore supplies of paper under the said HSN were taxed uniformly without reference to the nature of its subsequent utilisation. 2.4 The Applicant further submits that after the amendment, the GST rate applicable to paper under HSN 4802 has become dependent upon the actual end use of the paper. According to the Applicant, where the paper is supplied for use in the manufacture of exercise books, graph books, laboratory notebooks and notebooks, the supply qualifies for exemption and attracts GST at the rate of zero percent. However, where the same paper is supplied for any other purpose, such as manufacture....
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....de attracts different rates depending solely upon its eventual use. 2.7 In view of the aforesaid circumstances, the Applicant submits that an authoritative clarification is necessary in order to ensure uniform implementation of the amended notification and to avoid future disputes concerning classification, applicability of exemption, documentation requirements and supplier liability. The Applicant has therefore prayed for a ruling clarifying whether supplies of uncoated paper falling under HSN 4802 to manufacturers of exercise books qualify for exemption under Sl. No. 128 of Notification No. 10/2025-Central Tax (Rate), whether the applicable rate is determined solely on the basis of the actual end use of the paper, and whether any ambiguity exists in respect of supplies made during the transition period or around the effective date of the amended notification. The Applicant has also expressed the view that the supply of HSN 4802 paper to manufacturers of exercise books is correctly taxable at zero per cent GST under the said notification, that there should be no burden of proof upon the supplier beyond the requirements prescribed under law, and that the supplier should not be h....
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....ated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and non-perforated punch-cards and punch tape paper, in rolls or rectangular (including square) sheets, of any size, other than paper of heading 4801 or 4803; [other than uncoated paper and paperboard for exercise book, graph book, laboratory note book and notebooks only] 4.3 Under these circumstances, the applicant has placed the following questions before this authority: A. Whether the supply of HSN 4802 paper to an exercise book manufacturer (who uses it exclusively for manufacturing exercise book) is correctly considered as taxable @ 0% GST? B. Whether the burden to verify end-use conditions lies on the supplier and to what extent such verification is required for applicability of Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025? C. Whether declarations/ certificates from the purchaser textbook manufacturer are sufficient to avail the conditional exemption of the above notification and whether additional documents (like purchase orders, usage undertakings, contracts etc) are also necessary for this purpose? D. Whether the correct rate cla....
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....ry with an exclusion clause and put the exclusion clause of the entry into a different schedule. If we carefully look at serial no. 167 of Notification No. 09/2025 Central Tax (Rate) dated 17.09.2025 supra, we will see that the entry is the same as the description of the above entry except for the bracketed exclusion clause which reads 'other than uncoated paper and paperboard for exercise book, graph book, laboratory note book and notebooks only'. Since this entry is included in Schedule II of the said notification, it is taxed @ 9% CSGT + 9% SGST with effect from 22.09.2025. The only difference between the two entries is that uncoated paper and paperboard used for specific purposes (here, for exercise books, graph books, laboratory notebooks, and notebooks) have been carved out from the description of goods to be found in serial no. 167. This carved-out portion finds entry in serial no. 128 of the Schedule in Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025 and is accordingly exempt from tax. If we analyse the description of goods under serial no. 128 of the Schedule in Notification No. 10/2025-Central Tax (Rate) dated 17.09.2025, the following points will emerge: ....
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....If we carefully go through the entries discussed in Paragraph 4.6, it will be evident that two kinds of use of uncoated paper and paperboard under tariff heading 4802 have been considered. They are: • Uncoated paper and paperboard used for exercise book, graph book, laboratory notebook and notebooks • Uncoated paper and paperboard used for other purposes We are of the opinion that rate classification of goods under tariff heading 4802 for the purpose of the GST Acts is solely based on actual use. This is clearly a case of usage-based taxation. There is no other criterion whatsoever. The basis of classification is very unambiguous. In our understanding, the phrase 'used for' is of utmost importance. Phrases such as 'for use in manufacturing' or 'to be used for manufacturing' etc have not been used in serial no. 128 supra. This clearly indicates that there is no scope for intention of use. It is to be used actually. There is no denying the fact that it is only at the point of manufacture that the actual use of paper and paperboard can be understood properly, i.e. whether it has been used for exercise books, graph books, laboratory notebooks, and notebooks....