Gst rate and hsn code of non woven polypropylene bags

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rajni sharma (Querist)
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26 September 2018 Dear Sir,

We deal in Non Woven PP bag but we are confused in GST rate and HSN code of the same item,i wrote mail also to CBEC but they suggest me to search on their site but result is negative.
I am sharing one link, i m bit confused is it applicable for every state???
https://www.taxscan.in/gst-department-clarifies-rate-tax-applicable-nonwoven-bags-cotton-bags-read-circular/15897/

Please solve my confusion ASAP.

Thanks & Regards,

Rajesh Kumar

Rajesh Kumar (Expert)
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26 September 2018 Real confusion. The circular issued by some Joint Commissioner is not only confusing, it is out-rightly wrong.
The product is non woven PP bags. This is an article of plastic, falling under Chapter 39 [HSN 39232990], attracting GST at the rate of 18%.
Looks like some person wants to treat as bags, made up of some manmade textile material. The question is- (i) Is it created by some manmade "textile" material. If the answer is yes, it shall be classified HSN 63053900, attracting GST at the rate of 5% [bags will certainly have a retail price less than 1000].

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rajni sharma

rajni sharma (Querist)
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26 September 2018 Thanks for reply sir.

Sir , we buy Non woven fabrics under HSN 5603 at 12% gst rate, then we send for printing and stitching to job worker , we are not using any kind of plastic material to prepare a bag.so in that case also item falls under chapter 39.
after your reply i talked to my fabric buyer, he said our product comes under man-made fabric.It means bag which we sold comes under 6305 @ 5% gst Rate.
Sir, m still in big big confusion , please help me...

Thanks & Regards,

Rajesh Kumar

Rajesh Kumar (Expert)
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27 September 2018 True. As you are buying textile material, and get it stitched- these bags shall be classified under heading 6305, attracting GST @5%.

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rajni sharma

rajni sharma (Querist)
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27 September 2018 As in FY 17-18 till date we are using HSN 3923 @ 18% Gst rate....if we start using HSN 6305 does it attract any kind of departmental notices?
or what could be consequences?

Thanks & Regards,
Rajni

Rajesh Kumar

Rajesh Kumar (Expert)
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27 September 2018 Yes, it shall be noticed by the department. They may ask certain questions too. However, those cannot be a reason to keep on misclassifying the product and paying higher amount of duty.
Take a written legal opinion from your advocate. He can research the topic further, and advise you correct path. You can follow that.

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rajni sharma

rajni sharma (Querist)
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27 September 2018 Sir, only advocate can do that,
actually my CA has no clue about that.....
too much tension...

rajni sharma

rajni sharma (Querist)
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27 September 2018
Sir please tell me , from where i can get further information about that...
So i can collect the data for clarification if it needed at department level..

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