The Karnataka GST AAR has ruled that “satin rolls” and “taffeta rolls” that measure 19mm to 40mm are subject to a 12% GST rate under tariff heading 5807 10 20.
Judicial members, Sri. Kiran Reddy T and DR. M.P. Ravi Prasad monitor that polyester yarn is used in the manufacture of taffeta rolls to protect the material from raveling or fraying and improve printing quality. Polyester yarns are used to make satin rolls, which are coated with optical or non-optical coatings that brighten and remove impurities.
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It consists of plain selvedges on both sides of the fabric and is cut with hot blades to arrest fabric fraying. Hence the products would be entitled to count under “narrow woven fabrics.”.
The petitioner would deal with the products which would be utilised in the garment industry which makes the textile garment wash care labels. The petitioner buys and sells the label rolls that would not be printed. Some of the vendors would be distinguished from the product under HSN 5806 which draws a GST rate of 5%, and additional under HSN 5807, which draws a 12% GST rate.
The petitioner seeks for advance ruling on the problem of the classification of products “satin rolls” and “taffeta rolls” whose sizes lie between 19 mm and 40 mm which would be covered beneath the classification of any goods or services or both.
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AAR, the satin rolls, and taffeta rolls would narrowly woven fabrics that would be made with man-made fibres, i.e., polyester yarn, and hence squarely comes beneath tariff heading 5807 10 20.
| Applicant Name | M/s. Mean Light Co. |
| Advance Ruling No. | KAR ADRG43/2022 |
| Date | 29.11.2022 |
| Represented by | Mrs. Shobha L, Cost Accountant & Authorised Representative |
| Karnataka GST AAR | Read Order |
