The Tamil Nadu Advance Ruling Authority has stated that there is a reduction in the slab of the polypropylene mats that are plated with the help of the polypropylene straw. From 1st January 2019, the GST of it will be 5 per cent i.e. 2.5 per cent for Central Goods and services tax (CGST) and 2.5 per cent for State Goods and Services Tax (SGST). While earlier it was 18 per cent i.e. 9 per cent for Central Goods and services tax (CGST) and 9 per cent for State Goods and Services Tax (SGST).
An advance ruling always steps ahead and help the taxpayer to plan his own GST payment liabilities that too in advance. Along with this, it also helps in bringing the steadiness in characterizing the tax liability because the AAR (Authority for Advance Ruling) has given the ruling to keep the applicant and the government authorities in contact.
Who is Employed in the Polypropylene Mats Trading?
One of the Mat industries which are located in Kanyakumari is employed in the polypropylene mats trading. The industry purchases polypropylene mats from different manufacturers.
The proprietor of the company has asked the authority to clarify the classification of the product of polypropylene mats and also asked how much of the GST rate is applicable to them.
How are Most of the Goods and Services Classified Under GST?
The goods and services categorized with the help of the HSN (Harmonised Commodity Description and Coding System) under the GST (Goods and Services Tax). The HSN structure comprises of 21 sections, with 99 chapters, about 1,244 headings, and 5,224 subheadings. According to this classification, the GST rates are applied to the products.
The proprietor in his application said “HSN code for the mats given by the manufacturer is 4601 and they are invoicing the outward supply mentioning this code. However, tax officials say that HSN Code 3902 is applicable for polypropylene mats”.
Read Also: Current Applicable GST Slab Rates in India
The Tamil Nadu Advance Ruling Authority said that the polypropylene mats comes under the HSN code 4601. It also said that the from 1st July 2017 to 24th January 2018 18 per cent of GST (9% Central Goods and Services Tax and 9% State Goods and Services Tax) was applicable. The reduced GST rate of 5 per cent (2.5% Central Goods and Services Tax and 2.5% State Goods and Services Tax) will be applicable from 25th January 2018 to 31st December 2018 and as per the changes, it will be applicable from 1st January 2019 said the Authority.
