The Tamil Nadu Authority for Advance Ruling (AAR) held that the mattresses provided to the educational institutions of both Karnataka State and other states are liable for 18% Integrated Goods and Services Tax (IGST).
The applicant, Hosur Coir Foams Private Limited is a maker and provider of rubberized coir mattresses and bare blocks, alleges that its supply to educational institutions is free from tax.
Before the authority, the applicant’s authorised signatory (AS) presented itself and made the submissions clear. The AS clarified that they are a mattress manufacturer and sent two invoices with GST at an 18% rate to a Karnataka State undertaking for use in student hostels managed by the Karnataka State Social Welfare Department. No exemption was requested that the supplies had already been purchased against a tender.
The authority noted the issue that needs to be resolved is the GST rate applicable for the supply of Mattresses expected for hostel students of educational institutions run by the Government of Karnataka and other educational institutions through M/s Coir Industrial Co-operative Society Limited under the Tender process. This was noted after reviewing the submissions of both parties.
The GST Notification No. 02/2017 IT (Rate) on June 28, 2017, was observed more clearly, and it was resolved that there was no exemption for HSN 9404, let alone supplies for students residing in government-run dormitories.
The mattresses, categorised by the assessee under HSN 940429, provided by the assessee in the State of Tamil Nadu to hostel students of government schools and educational institutions of the Government of Karnataka under the Department of Social Welfare, were determined to be subject to 18% IGST by the panel of two judges, N. Usha and R. Gopalasamy. Also, it was concluded that other states would also be subject to the same 18% IGST rate.
| Applicant Name | M/s Hosur Coir Foams Pvt Ltd |
| GSTIN of the applicant | 33AAACH5917Q1Z9 |
| Date | 28.03.2023 |
| Tamil Nadu GST AAR | Read Order |
