“Clarification on Rate of tax and HSN code for Nonwoven Rice Bags”
The Applicant manufactures sacks and bags of Nonwoven fabrics. They purchase nonwoven fabric rolls and convert the same into sheets by cutting and printing and then stitch into Bags. Such Nonwoven fabric bags are mainly used for packing Rice and food products.
They have stated that on 23.06.2017, the GST council meeting had made some announcement that these bags fall under HSN Code 6305 are liable to be taxed at 5% if the sale value falls below Rs.1O0O/- . For the value of more than Rs.1000, it is liable to be taxed at 12%, but the GST Act schedule does not speak about that and the HSN Code 6305 is missing while introducing the GST Act
The category of product sacks and bags of Nonwoven Fabrics falls under the classification of 6305 and applicability of rate of tax 5%/12%.
The Non-woven fabric bags called as Rice Bags manufactured by the applicant falls under HSN 63053300 and the applicable rate for the bags of value not exceeding Rs. 1000 per piece is 2.5% CGST as per S.No. 224 of Schedule I of Notification No. 1/2O17-C.T. (Rate) dated 28.06.2017 and 2.5% SGST as per S.No. 224 of Schedule I of G.O.
(Ms) No. 62 dated 29.06.2017 No. II(2)/CTR 1532(d-4)l2oI7.
Tamil Nadu Authority of Advance Ruling
Sharmila Screen Printers
TN/12/AAR/2018 Dt. 27.09.2018
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