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2021 (12) TMI 108 - AAR - GSTClassification of goods - Class Monitor Home Learning Kit - rate of GST - classified under HSN code 4903 or not? - HELD THAT - The kit box/book should be covered under heading 4903 bearing NIL rate of tax, being the kit box/ book is a children's picture books drawing or colouring book wherein the pictures form the principal interest an the text is subsidiary. That it is not in the book form or bounded form. Therefore the said learning kit should not be covered under heading 4903 bearing NIL rate of tax. On combined reading of tariff and HSN 49001, the kit box/ book, which is in the form of separate sheets which are designed for binding (though not bound to maintain the use) could be covered. Further, such separate sheets (being integral part of kit box/book) have printed pictures but such sheets also bear text and in one shape, so it appears to be covered under HSN 49011020 and not under HSN 4903 attracting NIL CGST/SGST/IGST.
Issues Involved:
1. Classification of "Class Monitor Home Learning Kit" under GST. 2. Applicable GST rate for the "Class Monitor Home Learning Kit". Issue-wise Detailed Analysis: 1. Classification of "Class Monitor Home Learning Kit" under GST: The applicant, M/s. Riseom Solutions Private Limited, manufactures and sells a learning kit called "Class Monitor Home Learning Kit" aimed at pre-schoolers to develop various skills through activity-based learning. The applicant contended that the kit should be classified under HSN code 4903, which pertains to "Children's picture, drawing or colouring books" and attracts a NIL GST rate. They argued that the kit is primarily composed of pictures with text being subsidiary, making it fit the definition of children's picture books as per Chapter 49 of the GST Tariff. The Department, however, opined that the kit attracts a 5% GST rate (2.5% CGST and 2.5% SGST) and does not fall under HSN code 4903. Instead, they suggested it should be classified under HSN 4901, which includes printed books, brochures, leaflets, and similar printed matter, attracting a 5% GST rate. Upon examination, the Authority for Advance Ruling noted that the learning kit is not in a bound book form, which is a requirement for classification under HSN 4903. The kit consists of separate sheets designed for binding, but not bound to maintain usability for children. Therefore, it was determined that the kit does not meet the criteria for HSN 4903. 2. Applicable GST rate for the "Class Monitor Home Learning Kit": The Authority concluded that the "Class Monitor Home Learning Kit" is more appropriately classified under HSN 4901. Specifically, it falls under HSN 49011020, which covers printed books, brochures, leaflets, and similar printed matter in single sheets, whether or not folded. This classification attracts a GST rate of 5% (2.5% CGST and 2.5% SGST) as per entry 201 of Schedule I of notification number 01/2017 CGST (rate) and corresponding SGST notification. Ruling: 1. The "Class Monitor Home Learning Kit" manufactured, marketed, and sold by the applicant is classified under HSN 49011020. 2. The applicable GST rate for the kit is 5% (2.5% CGST and 2.5% SGST) and 5% IGST as per the relevant notifications. This ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104(1) of the GST Act.
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