LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Hsn code for areca leaf plates and its tax rate ?

Aravind Kannan (Future CA ) (148 Points)

01 July 2017

Dear Friends,

I am running an areca leaf plates manufacturing factory and sell areca plates. I also buy areca leaf sheaths as raw materials. This is more like a small cottage industry type of business. In the previous VAT regime, it was fully exempt. Now, i would like to know the exact HSN code for my Raw material and Areca leaf plates. I also would like to know whether they are zero rated or exempt ? Your suggestions/answers would help me immensely. Thank you .

Regards,

Aravind.K

Reply
Follow
Share

16 Replies

Pradeep (Exporter) (39 Points)
Replied 02 July 2017

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.

Aravind Kannan (Future CA ) (148 Points)
Replied 03 July 2017

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

Aditya Chirravuri (2 Points)
Replied 08 July 2017

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.

Chetan M S (Self Employed ) (14 Points)
Replied 10 July 2017

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.

1 Like

Balaji Raja (2 Points)
Replied 10 July 2017

Pls tel HSN code for areca plate...

Pradeep (Exporter) (39 Points)
Replied 12 July 2017

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.

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

1 Like

Chetan M S (Self Employed ) (14 Points)
Replied 12 July 2017

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

Pradeep (Exporter) (39 Points)
Replied 13 July 2017

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.

Ramesh Douglas (2 Points)
Replied 03 August 2017

Hi Mr.Aravind, we have gone though all the replies, Iam also doing Business of Areca Leaf Plates at chennai, still we are using HSN OF 14049090 and charges 5% as GST, some peoples are saying it is exempted? shall we consider this as sheath instead of leaf and is it under exempted? or any proof that our product is coming under exempted...Please let us know your final reply whether you are charging GST or not? Thanks/Regards..A.Ramesh

Aravind Kannan (Future CA ) (148 Points)
Replied 09 August 2017

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

sriram (PARTNER) (35 Points)
Replied 11 August 2017

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

1 Like

Ani (Founding Partner) (22 Points)
Replied 08 November 2017

Hi friends

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

Thanks

bhavika jain (NA) (33 Points)
Replied 17 August 2018

Did you recd any reply on product made of areca leaf

The Plant Pantry (2 Points)
Replied 16 July 2019

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?