The Gujarat Authority for Advance Ruling ( AAR ) has ruled that 28% GST is payable on the supply of PVC floor mats for cars.
The applicant, Manishaben Vipulbhai Sorathiya, is in the business of manufacturing and supplying floor mats for four-wheel motor vehicles (cars). The floor mats are essentially made of PVC material.
The applicant has relied upon the case of M/s. Soft TurfandNational Plastic Industries Ltd. The applicant has further in his application stated that floor mats are alternatively also classified under 390410 as held by the Authority for Advance Ruling in the case of M/s. Stinzo Automotive.
The Authority noted that CTH 390410 clearly provides that it covers items by the description of polyvinyl chloride, not mixed with any other substances. This not being the case in the goods manufactured by the applicant,the question of the PVC mat of the applicant falling within the ambit of 390410 does not arise.
As is evident, for the goods to fall within the ambit of 390 1 to 3914, they have to be in primary form. The goods in relationto waste, parts, and scrap, as well as semi-manufactured items and articles, would appropriately have to be classified from CTH 3915 onward. Hence, the goods manufactured by the applicant, i.e., PVC floor mats formotor vehicles, would not fall within the ambit of CTH 3904.
The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the floor mats used for four-wheel motor vehicles (cars) supplied by the applicant are principally for use in motor vehicles. The applicant’s contention is that the product would merit classification under CTH 3918, as the product in question is a floor covering of plastic.
The concluded by noting that the impugned goods i.e. PVC floor mats for use in cars supplied by the applicant is classifiable under CTH 8708 & applicable rate of GST would be 28% [14% each of CGST and SGST].
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