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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 5%

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Classification of Goods — Authority for Advance Ruling — Taxability on Non-woven fabric bags known as 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. The applicant submitted that as per GST council meeting, these bags fall under HSN Code 6305 are liable to be taxed at 5% if the sale value falls below Rs. 1000/- and 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 applicant sought Advance Ruling regarding “clarification on Rate of tax and HSN code for Nonwoven Rice Bags”.
Held that:- The Hon’ble Authority for Advance Ruling held that 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. 1/2017-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/532(d-4)/2017.Kanniwadi Nagarajan Sharmila [2018] 4 TAXLOK.COM 032 (AAR-Tamil Nadu)