Telangana Authority for Advance Ruling ( AAR ) chaired by members of S.V. Kasi Visweswara Rao and Sahil Inamdar ruled that 12% Goods and Services Tax ( GST ) applicable on Paper based Corrugated Sheets.
The applicant M/s. S S R K Plastics Private Limited, manufacturers of paper based Corrugated Sheet of different sizes raised the issue to clarify the rate of GST applicable for paper based Corrugated Sheets.
The bench observed that the queries raised by the applicant fall within the ambit of Section 97 of the Goods and Services Tax Act, 2017.
The Personal Hearing was conducted to uphold the principles of Natural Justice and Authorised representatives of the assessee D. Bhanu Pratap, Chartered Accountant attended the same on behalf of the applicant.
Further, the representative also submitted the sample corrugated sheets as evidence.
The authority, on verification of the nature of the activity carried out by the applicant, it was observed that the applicant is a manufacturer of corrugated sheets, rolls etc., which is used in the primary packing of goods as a cushioning material, separators or edge protector, for making shipping cartons of goods and as pallets and pallet boxes.
The Representative submitted the entries and the authority carefully read the entries and submissions made at the time of personal hearing and also verified that the sample sheet, the paper based corrugated sheet falls under Heading 4808.
The Heading 4808 included Paper and paperboard, corrugated (with or without glued flat surface sheets), creped, crinkled, embossed or perforated, in rolls or sheets, other than paper of the kind described in heading 4803.
The bench observed that the tax rate shall be 12% where 6% to State Goods and Services Tax (SGST) and 6% to Central Goods and Services Tax (CGST).
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