2019 (7) TMI 845 - AAR - GST

Classification of goods - rate of GST - Slabs of Quartz (Artificial Stone) - HELD THAT - The classification of floor and wall tiles of agglomerated stone is dependent on the precise type of binding material used in the products. Subheading 6810.19. 12 provides for floor and wall tiles of stone agglomerated with binders other than cement (e.g. plastic resins). Floor and wall tiles of stone agglomerated with cement are classifiable in subheading 6810.19.14. The slabs supplied by the applicant are however not made of stone but quartz. The slabs supplied by the applicant are composed of 92% quartz and 8% resin binder - the product can merit classification under the residuary category of tariff entry 68101990 - The applicable rate of GST on Quartz Slabs (Artificial Stone) is 18%.

Summary

Issues: Classification of Quartz Slabs (Artificial Stone) and Applicable GST Rate

Classification Issue Analysis:
The applicant, a manufacturer cum supplier of Quartz Slabs, sought an advance ruling on the correct classification of the product under the GST Act. The applicant argued that Quartz Slabs should be classified under HSN 6810, specifically under 68109990, attracting an 18% GST rate. They contended that Quartz Slabs are articles of artificial stone and not covered under tiles or similar articles. The applicant relied on a decision of the appellate authority for advance ruling under GST in a specific case to support their classification argument. The authority examined the manufacturing process of Quartz Slabs, emphasizing the composition of quartz and resin binder, and concluded that the product falls under the residuary category of tariff entry 68101990, supporting the applicant's classification stance.

Applicable GST Rate Issue Analysis:
Regarding the applicable GST rate on Quartz Slabs, the authority ruled that the product falls under HSN Code 68101990, attracting an 18% GST rate (CGST 9% + SGST 9%). The ruling was based on the composition of the slabs, primarily consisting of quartz and resin binder, leading to classification under the specified tariff entry. The authority's decision was grounded in the understanding of artificial stone products and the specific composition of Quartz Slabs, aligning with the applicant's argument for the 18% GST rate.

In conclusion, the Authority for Advance Ruling, Rajasthan, pronounced a detailed judgment on the classification of Quartz Slabs (Artificial Stone) and the applicable GST rate. The ruling clarified the classification under HSN Code 68101990 and determined the GST rate at 18%, providing a comprehensive analysis based on the manufacturing process, composition, and relevant provisions of the GST Act.