12% GST payable on PVC tufted Coir Mats and Matting: AAR [Read Order]
![12% GST payable on PVC tufted Coir Mats and Matting: AAR [Read Order] 12% GST payable on PVC tufted Coir Mats and Matting: AAR [Read Order]](https://www.taxscan.in/wp-content/uploads/2021/07/GST-PVC-tufted-Coir-mats-and-matting-AAR-Taxscan.jpeg)
The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST payable on PVC tufted Coir mats and matting.
The applicant, Alleppey Fibretuft Pvt Ltd is engaged in the manufacture and sale / supply of “PVC Tufted Coir Mats and Matting” in the local / domestic market.
The applicant submits that the PVC Tufted Coir Mats and Matting are manufactured using technologically advanced machines. The machine is designed in such a way that coir yarn stacked in creel stand is automatically fed into cutting / tufting head where that yarn is cut into bits of required pile height and tufted over a uniform thickness PVC base in conveyor belt which is cured by passing over heated radiators (Heating Zone) and then chilled surface (chilling zone) of the continuous process machinery. The PVC base solidifies and results in formation of PVC matting in rolls which can also be cut into mat size by longitudinal and cross cutting. All the above process is done in this machine automatically and this requires minimum labour for operation.
The applicant has sought the advance ruling on the issue whether or not item number (A) (xiii) in Schedule 1 2.5% (which reads as in SI.No.219, in column (2), for the figure, ‘5705’, the figures ‘5702, 5703, 5705’, shall be substituted), referred to in Notification No.34/2017-Central Tax (Rate) dated 13.10.2017 is meant to cover PVC Tufted coir Mats and Matting.
The other issue raised was Whether or not PVC Tufted Coir Mats and Matting attract a low band of tax rates as per the recommendations of the Fitment Committee and approval of the GST Council.
Yet another issue raised was whether or not PVC Tufted Coir Mats and Matting can be classified under tariff item 5703.90.90 — Of other textile material — Other corresponding to entry in SI.No.144 of Schedule II attracting 12% GST.
The coram of Joint Commissioner of Central Tax, Shiva Prasad and Additional Commissioner of State Tax, Senil A.K.Rajan ruled that No. SI No. 219 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No.34/2017-Central Tax (Rate) dated 13.10.2017 does not cover PVC Tufted Coir mats and matting.
“ PVC tufted Coir mats and matting are appropriately classifiable under Customs Tariff Item 5703.90.90 and attract GST at the rate of 12% (CGST — 6% + SGST- 6%) as per entry at SI. No. 144 of Schedule II of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017,” the AAR observed.
To Read the full text of the Order CLICK HERE
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