12% GST on Finished Zipper, Zip Roll, and Slider from October 2019 onwards: AAR [Read Order]

The Gujarat Authority of Advance Ruling (AAR) ruled that 12% GST on Finished Zipper, Zip Roll, and Slider from October 2019 onwards.

The applicant, M/s The Roll Company  is engaged in the manufacture of Slide Fasteners and its Parts falling under HSN 9607. After July 27, 2018, there is no uniformity in the classification and the rates of duty in respect of the products, Slide Fasteners and its Parts in the units manufacturing identical products.

The applicant has sought the advance ruling on the issue in respect of the Classification as per HSN and rate of tax in terms of the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 as amended by the Notification No.18/2018-Central Tax (Rate) dated 26.07.2018 in respect of their products, The Zip Roll (i.e. Slide Fasteners), Finished Zippers and Sliders.

The coram consisting of Sanjay Saxena and Mohit Agarwal held that the product, ‘Finished Zipper’ shall be classified as “Slide Fasteners” under Chapter heading 9607.11 and Other products, viz. ‘Zip Roll’ and “Slider” merit classification as ‘Parts of slide fasteners’ under chapter heading No. 9607.20.

Accordingly, the product, ‘Finished Zipper’ is liable to 18% GST till July 26, 2018, then 12% GST from July 27, 2018 to September 30, 2018 and 12% GST from October 1, 2019 onwards. Whereas, the other products, viz. ‘Zip Roll’ and “Slider” are liable 18% to GST till September 30, 2018 and 12% GST from October 1, 2019 onwards.

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