The Karnataka Authority for Advance Ruling( AAR ) has held that Products Sattin Rolls and Taffeta Rolls that are used in the garments industry with sizes between 19mm and 40mm are classified under Custom Tariff heading 5807 and will attract 12% GST.
The applicant is the dealer of the products satin rolls and taffeta rolls which are used as label rolls for the purpose of printing wash care instructions and fabric contents. The vendors classified the said products HSN 5806 and which attract GST rate 5% and others under HSN 5807 which attract GST 12%. Cheap Taffeta Fabric
The applicant has sought an advance ruling in respect of classification of products satin rolls and taffeta rolls with sizes between 19mm and 40mm.
Shobha .L on behalf of the applicant submitted that some of the vendors classified the said product under HSN 5806 and which attract GST rate 5% and others classified under HSN 5807 that 12% GST rate :that the said products are appropriately classifiable under HSN 5807.
The two member bench of Authority of Advance Ruling, M P Ravi Prasad (Additional Commissioner commercial Taxes) and Kiran Reddy T (Additional Commissioner Custom & Indirect Taxes) observed that satin rolls and taffeta rolls are woven products consisting of wrap and weft and are not assembled by means of adhesive .Thus the impugned products are not covered Under Tariff (Custom Tariff Act, 1975) heading 5806.
Further, the impugned products are narrow woven fabrics, made up of manmade fibres that is polyester yarn and thus are squarely covered under tariff heading 5807 10 20.Therefore the impugned products merit classification Under Tariff heading 5807 10 20.
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