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TMI Blog2018 (10) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... g rice and food products and the product made of 100% polypropylene fiber is classifiable under 63053300. Rate of tax - Held that:- The applicant has stated that their product nonwoven fabric bag falls below ₹ 1000/ Therefore, the applicable rate 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. Ruling:- The Non-woven fabric bags called as Rice Bags manufactured by the applicant falls under HSN 63053300. The applicable rate for the bags of value not exceeding ₹ 1000 per piece is 2.5% CGST as per S.No. 224 of Schedule I of Notification No. 1/2017-C.T. (Rate) date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clarification on Rate of tax and HSN code for Nonwoven Rice Bags 2.1 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. They have stated that on 23.06.2017, the GST council meeting had made some announcement that these bags fall under HSN Code 6305 are liable to be taxed at 5% if the sale value falls below ₹ 1000/-. For the value of more than ₹ 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. 2.2 The Applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s applicant is selling at prices below ₹ 1000/- each. The applicant is purchasing no woven fabrics made of 100% polypropylene fiber in the form of rolls usually in white colour, cutting into desired sizes and printing on it based on various designs, logos required by their clients. They are then stiched into bags and sold to their clients. 4.1 The issue for decision before us is the appropriate Rate of Tax and HSN code for Nonwoven Rice Bags manufactured by the applicant. From the various submissions of the applicant, it is evident that the applicant purchases non-woven fabric roll, convert into sheets by cutting and on printing, stitch into bags which are used mainly for packing rice and food products. They have further stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Of other textile materials This heading covers textile sacks and bags of a kind normally used for the packing of goods for transport, storage or sale. The applicant manufactures non-woven fabric bags which is used mainly for packing rice and food products and the product made of 100% polypropylene fiber is classifiable under 63053300. 4.3 Having decided the classification, the next issue to be decided is the applicable rate. The description of the goods is mentioned at S.No. 224 of Schedule 1 of Notification No. 1/2017-C.T.(Rate) dated 28.06.2017, which are reproduced below: Sl. No. Chapter/ Heading/ Sub-heading Tariff item Description of Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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