Hsn code for areca leaf plates and its tax rate ?

Mr. Arvind Kannan,

There is still confusion regarding HSN for areca leaf plates, 46021990 is the HS code which is generally used for exports, but as per my view in that HS code we can classify areca leafs which is used for making basket or cap from Areca tree leafs. For making plates, areca leaf sheaths are used. For this there is no specific HS code mentioned anywhere. In this case we can either consider 14049090 for which GST is 5% and other HS code is 06049900 as its a Part of the plant "not elsewhere specified" and for this HS code GST is 0%.

Need feedback from respected CAs.

Mr. Pradeep,

Thanks for your reply.

I am of the opinion, that in areca plates manufacturing industry, we are colloquially using the word "Areca leaf plates"  in discussion or in invoices but actually they are not leaves. They are sheaths. So i guess , hereafter we have to alter the term and use it correctly as "Areca Sheath Plates". I also feel , it should be taxed at "0%" under the HSN code - 06049900.

 Further i feel  HSN code 14049090  cannot be used as we are not using leaf or leaves and 

Since i am not aware of the term "vistarakulu" and when i googled it, i came up with the above findings.

Patravali or Pattal or Vistaraku or Vistar or Khali is an Indian eating plate or trencher made with broad dried leaves. It is mainly made from Sal or Banyan tree leaves, in circular shape, by stitching 6 to 8 sal leaves with tiny wooden sticks.

[1] It is popular during traditional meals, festivals and in temples.

[2] It is a cottage industry in India where women work on weaving them at home in spare time.

Regards,

Aravind.K

Hello Sir,

Even i am under same delimma. does it come under 5 % slab and also  whether its for the manufacturer or for the dealer. should the manufacturer collect 5 % from the dealer.also should the dealer collect from the end user.if the goods is been transported from manufacturing unit to a storage place still do we need to generate a bill.

Originally posted by : Aditya Chirravuri
	Hi Aravind and Pradeep, What's our final take on this? I see in sub-chapter 1404 it's mentioned betel sheaths (I'm considering them to be sheaths. Agreed it's the right word.) is taxable at 0% and Leaf plates at 4%. I'm neither a finance student nor good at numbers. However, we're into this business so looking out for sensible answers. Cheers for starting this thread. Regards, Aditya.

Hi

HS code 14049040 is for Betel leaves and that leaves is used for making Pan or beeda, that cannot be called as betel sheaths.

46021910 does this be the HSN for areca leaf or palm leaf

HSN 4602 is for palm leaves which is used for making basket work , wicker work and other articles using plaiting materials such as areca leaves.  For making plates you will be using areca leaf sheath, which is not a leaf, but part of the plant.

Sir,

Till now i am not able to arrive at a conclusion regarding the gst rate for plates. I am still looking for solution to classify it under zero rate but not successful yet. Maybe we need to write the GST , like advance rulings, seeking the exact tax rate structure for arece sheath plates.. There is a possibility to tax it under residual clause @ 28% bracket, if we don't classify it under 5% leaf plates category. So it is better to seek the right rate from GST council. In the meanwhile , you can wait if your Turnover is not exceeding Rs.20 lakhs p.a. and no interstate sales.  There is a possibility in future as well to bring down the tax rates or we may know the exact HSN code. 

Regards,

Aravind.K

Sir

We are also manufacturer and exportere of these plates. We have sought the GST council for clarification and we have also given appeal to Finance minister. We have yet to receive any reply. In karnataka also they have approached the state minister and awaiting the clasification. As per our understanding the purchase of Areca sheath is exempted as it is an agricultural product. Regarding finished product there is no clarity. Once we receive we will inform you. If you receive more inforamtion please share.  Thanks  Sriram

Hi friends

Do share if there has been any progress in figuring out GST for areca leaf sheath products...

Thanks

A

Did you recd any reply on product made of areca leaf

hi all

I am still confused . i am an exporter of areca sheaths plates... I am using HSN 4602  , what the HSN code for this product. who is ultimate person to clarify this .

Does it come  under Nil tax?