Pp Woven Fabric GST Rate Clarification

Kindly Clarify Rate on PP Woven Fabric ...this Fabric is used for Packaging of Goods ...But from Starting Manufacturer using HSN:- 3926... and it Fall in 28% 

But in Full Chain From start to End :- Granual -18% > Fabric Tap -18% > After Weaving of Tap "HDPE/PP Woven Fabric" -28% > Manufacturing of Woven Sacks & Bag -18%

Because of this small Bag Fabricater losing their customer and also not able stand in Market.... I request Either we change the name from Pp Woven Fabric to " Packaging for Goods Fabric" so automatically it's fall under HSN CODE :-3923 or Kindly Reduce the GST Rate from 28% to 18%
Replies (2)
non woven fabric HSN code 5603

Hello,

We at Disha Jute acknowledge the concerns raised regarding the GST rate disparity across the PP woven fabric supply chain. This issue indeed poses challenges for small-scale manufacturers in the packaging industry.

Our Perspective:

  • Product Classification: PP woven fabric, primarily used for packaging goods, is currently classified under HSN Code 3926, attracting an 18% GST rate. However, once the fabric is woven into sacks or bags, it falls under HSN Code 6305, which attracts a higher GST rate of 28%.

  • Impact on Small Manufacturers: This classification shift leads to increased tax burdens on small manufacturers, affecting their competitiveness and profitability.

Proposed Solutions:

  1. Reclassification of Finished Products: Advocating for the reclassification of woven sacks and bags under HSN Code 3923, which pertains to other articles of plastics, could harmonize the GST rate across the supply chain.

  2. GST Rate Rationalization: Engaging with industry associations and policymakers to propose a uniform GST rate of 18% for both PP woven fabric and its finished products might alleviate the tax burden on manufacturers.

We encourage fellow manufacturers and industry stakeholders to collaborate and present a unified representation to the GST Council, highlighting the need for a more equitable tax structure in the packaging sector.

For more information on our products and services, please visit our website at https://www.dishajute.com.

Best regards,
Ravi Shankar
Disha Jute Team

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