Fusible interlining cloth is not a woven fabric, 12% GST applicable

Last updated: 19 January 2023

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Quick Summary

The West Bengal Appellate Authority of Advance Ruling (AAAR) has determined that fusible interlining cloth is not a woven fabric. Consequently, it falls under HSN 5903, making it subject to a 12% Goods and Service Tax (GST) rate. This ruling clarifies the tax treatment for this specific textile product.

Court :
GST AAAR West Bengal

Brief :
The Appellate Authority of Advance Ruling (AAAR), West Bengal ruled that fusible interlining cloth is not a woven fabric and falls under HSN 5903, so 12% Goods and Service Tax (GST) is applicable.

Citation :
IN RE SADGURU SEVA PARIDHAN PVT. LTD

DATED; 19/03/2020
IN RE SADGURU SEVA PARIDHAN PVT. LTD
GST AAAR WEST BENGAL

HELD THAT

Fusible interlining cloth is not a woven fabric, 12% GST applicable

FACTS OF THE CASE

The product manufactured by the appellant is fusible interlining cloth.

Before 1989, the item used to be classified under Chapters 52 to 55, as clarified under Circular No. 5/89 dated 15/06/1989.

In the Union Budget of 1989-90, a new chapter note 2(c) was introduced in Chapter 59 of the Tariff, which led to inclusion of textile fabrics, partially or discretely coated with plastic by dot printing process under heading 5903.

Subsequently, in the Union Budget of 1995, the said chapter note 2(c) was omitted with effect from 16/03/1995.

It is the claim of the appellant that after removal of the said chapter note, the item cannot be classified under Heading 5903.

JUDGMENT

The Appellate Authority of Advance Ruling (AAAR), West Bengal ruled that fusible interlining cloth is not a woven fabric and falls under HSN 5903, so 12% Goods and Service Tax (GST) is applicable.

FAQ :

The West Bengal AAAR ruled that fusible interlining cloth is not a woven fabric.

A 12% Goods and Service Tax (GST) is applicable to fusible interlining cloth.

Fusible interlining cloth is classified under HSN 5903.

Yes, the classification has seen changes. Before 1989, it was classified under Chapters 52 to 55. After a budget amendment in 1989, it was included under heading 5903. A subsequent omission of a chapter note in 1995 led to the appellant's claim that it should no longer be classified under 5903, which was ultimately decided against by the AAAR.