Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Gst rate on non woven pp bags?

swati (CA) (56 Points)

07 September 2017

Hello,

please anyone help me on this.

My client is making Non Woven Bags used for Rice Packing. He bought Non Woven Fabric Sheets (HSN 5603 rate 5%) made from Poplypropelene (HSN 3902 rate 18%). He then cut those sheets in the desired manner change some composition and with printing and stiching sold them to their respective clients. Now confusion arise whether this product to be considered under 3923 or 6305 or 5603 HSN code. Rate for 3923 is 18% and for 5603 and 6305 is 5%.

Anyone please clarify in which HSN code it will fall and any criteria of choosing the same.

Thank You

Regards

Reply
Follow
Share

9 Replies

swati (CA) (56 Points)
Replied 12 September 2017

Anyone please help me on this.. Still not able to clear my query..

swati (CA) (56 Points)
Replied 15 September 2017

Just a bump ... Anyone can please help me on this?

swati (CA) (56 Points)
Replied 20 September 2017

please anyone help

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160663 Points)
Replied 20 September 2017

'3923' at 18% GST because of polypropelene material.......

darshak (Assistant Accountant) (24 Points)
Replied 20 September 2017

ACCORDING TO MY KNOWLEDGE IT SHOULD BE 6305, FOR NON WOWEN BAG, PART OF TEXTILE GST RATE IS 5% FOR AMOUNT RS.1000/- OR LESS PER PIECE.. I THINK I WON'T BE 3923 BECAUSE 3923 IS FOR BAG WHICH OF MOSTLY PLASTIC.. THANKS

swati (CA) (56 Points)
Replied 21 September 2017

@ Darshak and Dhirajlal

The material used in making these bags is spunbonded non woven poplypropylene fabric covered under 5603 Hsn code. From that fabric different sizes are cut, a small chemical is used and then that fabric is stiched and printed. Now the confusion is the same whether to take it in 3923 (as in that all plastic material bags are covered, which i am suspicious as the material used is called fabric and stiched from that fabric) and in 6305 only it is written sacks and bags of polypropylene strip used for packing. One last thing it also cant be covered under 5603 too as use of that fabric is completely changed and a new product is made.

So, any further help or clarification will be of great help.

swati (CA) (56 Points)
Replied 29 September 2017

Originally posted by : Dhirajlal Rambhia
	'3923' at 18% GST because of polypropelene material.......

Sir can you please answer the above doubt i mentioned

" @ Darshak and Dhirajlal The material used in making these bags is spunbonded non woven poplypropylene fabric covered under 5603 Hsn code. From that fabric different sizes are cut, a small chemical is used and then that fabric is stiched and printed. Now the confusion is the same whether to take it in 3923 (as in that all plastic material bags are covered, which i am suspicious as the material used is called fabric and stiched from that fabric) and in 6305 only it is written sacks and bags of polypropylene strip used for packing. One last thing it also cant be covered under 5603 too as use of that fabric is completely changed and a new product is made. So, any further help or clarification will be of great help."

sourav1caclub (student) (22 Points)
Replied 01 October 2018

This is to enlighten the fact about non woven bag tax rate. Refering to a case of an assesse of madurai district related to it. Joint commissioner V.pandiraja As per custom tariff Act,this product is classified under HSN code 6305900 @ 5% condition if sale not exceed 1000/piece[vide sl no. 224 of schedule I of notification 1/17 c tax rate dt. 28/6/17 If sale not wxceed 1000/piece

roorkee@2017 (consultant) (23 Points)
Replied 22 March 2019

i purchased non woven bag ( hsn code 6305) & print on the bag (the name of shop keeper)....& again sale to shop keepers .....i wold like to know that what is the tax rate either 5% or 12%( print rate ) ...please help me...