The Gujarat Authority of Advance Ruling (AAR) ruled that 5% GST applicable on Narrow Woven Fabrics of Polyester Yarn.
The Applicant, M/s Rajivkumar Giriraj Bansal is engaged in manufacturing narrow woven fabrics, which are woven on special narrow fabric looms called Needle loom where the number of tapes/yarn warping according to size and width of tape and cord, the weft yarn is carried through long needle.
These machines are used for larger runs because of their high speed capabilities. Several sets of warp yarn may be beamed together to make several narrow fabrics side by side, on the same loom. The width of the narrow fabrics manufactured is below 12 inches.
The applicant sought for the Advance Ruling in respect of the issue whether the Narrow woven fabrics manufactured are classifiable under Tariff Heading No. 58063990.
The Coram consisting of Sanjay Saxena and Mohit Aggarwal observed that narrow Woven Fabrics of Polyester Yarn of a width not exceeding 30 cm but not provided with selvedges (flat or tubular) on both edges manufactured by the applicant is classifiable under Chapter Sub-heading No.5407.10.19 of the Customs Tariff Act, 1975, attracting a rate of 5% GST i.e. 2.5% CGST and 2.5% SGST or 5% IGST.
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