Authority for Advance Ruling — Classification and Taxability of Polypropylene Mat – The applicant is engaged in the trading business of Polypropylene Mats which are plaited using Polypropylene Straw on wholesale and retail basis. They are buying from various manufacturers and selling the Polypropylene Mat. The HSN code for the mats given by the manufacturer is 460101. They are invoicing the outward supply mentioning the description as “Polypropylene Mats / Mattings” under the HSN Code 460101. This HSN is also in the GST Tariff Ready Reckoner. Further, as per the Circular No. 4/2018 - Customs in F.No. 609/12/2018 - DBK dated 24/01/2018, the Polypropylene Mats are classified under tariff item 460101. But the tax officials are stating that HSN Code 3902 is applicable. The Applicant has sought Advance Ruling as to whether HSN Code for Polypropylene Mat which are plaited using Polypropylene Straw falls under Chapter Heading 4601 or 3902 and what is the applicable tax rate.
Held that:- The Hon’ble Authority for Advance Ruling held that Polypropylene Mat which are plaited using Polypropylene Straw is classifiable under CTH 46019900. The applicable tax rate from 1.7.2017 to 24.1.2018 is 18%. The rate from 25.01.2018 onwards is 5%.—Abubacker Kaleel Rahman, In Re… [2019] 10 TAXLOK.COM 141 (AAR-Tamil Nadu)