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2018 (10) TMI 343 - AAR - GSTMaintainability of Advance ruling application - applicant id recipient of goods - Classification of goods - Sacks and bags of a kind used for the packing of goods of manmade textiles materials. Held that - It is clear that applications for the advance ruling should be directly related to applicant in respect of supply of goods or services. In the instant case applicant is a recipient of goods and not the supplier or manufacturer of said goods. Since the applicant has sought question which is directly related to supplier of goods, the above said ruling does not appears to be applicable in instant case. The ruling is not applicable as applicant is a recipient of goods and not the supplier or manufacturer of the said goods.
Issues: Classification of sacks and bags for packing of goods under GST Tariff
Analysis: The case involved a query raised by M/s. Ramway Foods Ltd. regarding the appropriate classification of sacks and bags used for packing goods of manmade textiles materials under the GST Tariff. The applicant, engaged in the manufacture of Wheat Flour, Maida, and Suii, used sacks made from woven fabric for packing their final products. These sacks fell under HSN 6305 33 00 attracting a GST rate of 5%. However, the manufacturer suppliers of the sacks classified them under HSN 3923 29 90, charging GST at 18%. The applicant contended that this misclassification increased the cost of their exempted products as they were unable to avail credit for the input sacks and bags. The Advance Ruling Authority considered the definition of Advance Ruling under Section 95(a) of the CGST/SGST Act, 2017, which specifies that a decision is provided to an applicant on matters related to the supply of goods or services undertaken or proposed by the applicant. The Authority noted that the applicant was a recipient of goods, not the supplier or manufacturer. Since the query raised was directly related to the supplier of goods, the ruling was deemed inapplicable in the instant case. Therefore, the ruling by the Authority for Advance Ruling in Uttar Pradesh stated that it was not applicable to the applicant as they were a recipient of goods, not the supplier or manufacturer of the said goods. This decision was based on the understanding that the query raised did not directly pertain to the supply of goods or services by the applicant, as required by the provisions of the CGST/SGST Act, 2017.
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