The Karnataka Authority of Advance Ruling (AAR) recently held that the baby wipes will be applicable with 18% GST as a petitioner had come up with a query on the GST applicability on its products.
The M/s Xtra Care Products Private Limited which also happens to be the applicant in the matter has been doing the trading as well as the import of baby wipes in India, got the dispute settled by the order of Commissioner of Customs (Appeals-II), Chennai in which they had asked the classification of baby wipes.
The classification of baby wipes has been considered as 96190010 and the applicant is also considering the same within the classification for a compliance-based settlement.
The CBIC also issued a Circular bearing No.52/26/2018-GST dated 09.08.2018 to clarify the query and make a clearance on the products based on the wipes manufactured using spun lace non-woven fabric and to concern with the HSN code of 3307, 3401 and 5603.
The advance ruling was sought by the applicant concerned with the HSN code of the baby wipes classification and the rate of tax which is to be applicable and if the GST circular mentioned is not applicable, the applications can take the stance to go back and charge the overall product category with the 12 % charge.
The Coram of Dr M.P.Ravi Prasad and T. Kiran Reddy was there to clarify the matter to the applicant in the tariff heading and to mention that the product must be in accordance with the baby humans and to seek the purpose of the final product.
The ruling of the AAR final said in the statement that, “Thus the product “baby wipes” merits classification under tariff heading 3307 and attracts 18% GST, in terms of Circular supra dated 09.08.2018,”
