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TMI Blog2021 (8) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is engaged in the manufacture of tissue paper in various categories like facial tissues, kitchen towel, toilet roll & napkins. The applicant has sought advance ruling in respect of the following question: Whether the supply of tissue papers by the applicant is covered under Serial No. 112 of Schedule II of the Rate Notification No. 01/2017 Central Tax (R) and therefore, is leviable to GST at the rate of 12%? 3. Admissibility of the application: The question is about classification of their product falling under "classifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibres of pulp making. ii. Depending on the types of tree, wood can be divided into two types: softwood and hardwood. Wood fibre is made up of 35% softwood and 65% hardwood. Both softwood and hardwood can be applied to paper and pulp making. Wood pulp can be classified into softwood pulp and hardwood pulp. iii. The applicant uses raw materials like soft wood pulp, silica pulp, waste paper, cup stock waste, silicon coated paper and chemicals for manufacture of tissue papers. 4.4. The applicant stated that during the pre-GST period, they were discharging central excise duty on the goods falling under the Central Excise Tariff Sub Heading (CETSH) 4818 by availing benefit of concessional rate of duty vide Sl.No.163 of Notification No.12/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (goods) under HSN 4803 as per entry number 145 of schedule III to the Notification No. 1 /2017-Central Tax (Rate) date 28-06-2017 whose description reads as under: HSN 4803: Sl.No.145 Schedule No: III Description: Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surface-coloured, surface-decorated or printed, in rolls or sheets. Accordingly, the applicant has been discharging GST @ 18% [CGST-9% and SGST-9%] on their products. 5. Applicant's Interpretation of Law: 5.1 The applicant contends that the Notification No. 1/2017-Central Tax (Rate) date 28-06-2017, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KGST Act. 8. The Applicant is engaged in the manufacture of tissue paper in various categories like facial tissues, kitchen towel, toilet roll & napkins. The applicant sought advance ruling as to whether the supply of tissue papers by them is covered under Serial No. 112 of Schedule II of the Rate Notification No.01/2017 Central Tax (R) and therefore, is leviable to GST at the rate of 12% or not. 9. Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 notifies the rate of central tax in terms of schedules appended to the notification, that shall be levied on intra-state supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said schedules, falling under the tariff item, sub-heading, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct being "tissue paper not containing fibres obtained by a mechanical or chemi-mechanical process or of which not more than 10% by weight of the total fibre content consists of such fibres" is covered under HSN 48025450 i.e. 4802 and hence the GST rate @ 12% is applicable. We note that as per explanatory notes of Customs Tariff Heading issued by WCO in 2017, the scope of the chapter is defined as under: This Chapter covers : (I) Paper, paperboard, cellulose wadding and webs of cellulose fibres, of all kinds, in rolls or sheets : (A) Heading 48.01, 48.02, 48.04 and 48.05 relate to machine-made uncoated papers subjected, if required to sizing and simple finishing processes (e.g., calendering, glazing). Heading 48.02 also covers uncoa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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