12% GST on Mats, Matting & Floor Covering of Coir backed by PVC, Rubber, Latex: AAR [Read Order]

GST - Mats - Matting & Floor Covering of Coir - PVC - Rubber - Latex - AAR - Taxscan

The Kerala Authority of Advance Ruling (AAR) ruled that 12% Goods and Service Tax (GST) is payable on Mats, Matting & Floor Covering of Coir backed by PVC, Rubber, and Latex.

The applicant, United Rubber Industries manufactures mats, mattings and floor coverings of coir by various processes like weaving, tufting etc and are classified under headings 5702, 5703 and 5705 based on the method of manufacture. During such manufacturing process products may or may not be impregnated or embedded with Rubber, Latex, PVC etc for providing the backing for the surface textile, according to the customer specification. In all the cases products will have coir as its exposed surface. Such products irrespective of the backing are identified / known as coir products in the market or trade parlance.

As there is a general confusion among the trade as to whether coir products if backed by Rubber / PVC / Latex etc would come under the terminology “Coir mats, mattings and floor covering” and the rate of GST applicable on such backed product, the applicant has sought the advance ruling on the issue whether “Mats, Mattings and Floor Covering of Coir”, if backed by PVC, Rubber, Latex etc would fall under Tariff Headings 5702, 5703 and 5705 at SI. No.219 of Schedule I of Notification No.1/2017-CGST (Rate) dated June 28, 2017, within the 5% tax net, depending upon the respective manufacturing process of its exposed surface.

The coram of Joint Commissioner of Central Tax, Shiva Prasad and Additional Commissioner of State Tax, Senil A.K.Rajan ruled that Mats, Matting and Floor Covering of Coir backed by PVC, Rubber, Latex etc are appropriately classifiable under Tariff Sub- Heading 5703 90 90 of First Schedule of the Customs Tariff Act, 1975 and attracts GST at the rate of 12% (6% CGST and 6% SGST) as per entry at SI No. 144 of Schedule II of Notification No.1/2017-CGST (Rate) dated June 28, 2017.

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