The Authority for Advance Ruling (AAR), Uttar Pradesh has held that foam cup pads are to be classified under the Harmonized System of Nomenclature (HSN) code 39262091, attracting a Goods and Services Tax (GST) rate of 18%.
The ruling came in response to an application filed by M/s. Maa Visa Fom Cup Private Limited, a manufacturing unit located in Uttar Pradesh, specialised in the production of foam cup pads, a component used in the manufacturing of women’s brassieres (ladies bra).
The applicant, represented by Hitesh Bajaj sought clarity on the appropriate HSN code for their product Foam Cup Pads, which would determine the applicable GST rate.
The foam cup pads are manufactured using a combination of materials including polyurethane foam, glue and fabric. The applicant had been invoicing the product under HSN code 39269079, which falls under the category of “Other Articles of Plastics and other materials”.
However, the applicant wanted clarification on whether the product could be classified under HSN code 62129090 or 39262091, which could result in a lower GST rate of 5%.
The AAR, after careful consideration of the materials used and the characteristics of the foam cup pads, stated that the foam cup pads are made primarily from polyurethane foam, glue and fabric and it should be classified under HSN code 39262091 which pertains to “Articles of apparel and clothing accessories (including gloves, mittens, and mitts), of polyurethane foam” and shall be subject to GST at the rate of 18%.
In conclusion, the two-member authority comprising Shri Amit Kumar (CGST Member) and Shri Shri Harilal Prajapati (SGST Member) clarified that foam cup pads should be classified under HSN code 39262091 and the GST rate applicable to these foam cup pads stands at 18%, with CGST at 9% and SGST at 9%.
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