The West Bengal Authority for Advance Ruling (AAR) in a ruling has determined that Polyvinyl Chloride (PVC) raincoats shall be categorized under HSN 3926 as plastic articles and attract a Goods and Services Tax (GST) of 18%.
The AAR ruling came following an application filed by Aristocrat Industries Private Limited (Aristocrat), a Kolkata-based manufacturer that is involved in the production and supply of PVC raincoats. PVC being highly durable and water-resistant is an ideal material for crafting raincoats as protective outerwear.
The two-fold application made via Aristocrat asked for clarification on whether PVC raincoats should be classified under HSN Code 3926, which pertains to plastic articles, or under HSN Code 6201, which covers textile garments. Also, the applicant challenged whether a lower GST rate of 5% would be applicable if the cost of the raincoats was less than Rs 1,000.
On behalf of Aristocrat Chartered Accountant Vikash Dhanania and Authorized Representative Sumit Jaiwal appeared who argued that PVC raincoats, primarily made from polyvinyl chloride (PVC), are functionally made as protective outerwear and must be organized under HSN Code 6201 as articles of apparel.
The counsel referred to a ruling by the Customs Authority for Advance Rulings (CAAR) in the case of NZ Seasonal Wear Pvt. Ltd., which categorized similar PVC raincoats under HSN Code 6201, acknowledging them as textile garments due to their composition and intended use.
The two-member bench of Tanisha Dutta, Joint Commissioner, CGST & CX, and Joyjit Banik, Additional Commissioner, SGST noted that PVC, being a synthetic polymer, is covered under Chapter 39 of the Customs Tariff Act, 1975. The authority stressed that the chapter notes of Section XI, which deals with textile articles, exclude materials that are categorized under Chapter 39.
While the Bench in NZ Seasonal Wear (supra) laid on the intended use of the raincoats and the interpretation that specific non-woven synthetic garments can still be classified as textile apparel under HSN 6201, the West Bengal AAR in the present case rejected the analogy and created a precise distinction.
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It was held under the bench that PVC raincoats do not qualify as textile apparel as they are made entirely from polyvinyl chloride (PVC), which comes under Chapter 39 of the Customs Tariff Act. It was outlined under the authority that even though PVC raincoats serve as protective outerwear, their composition and the method of manufacture make them plastic articles instead of textile garments.
Directing to the General Rules for the Interpretation of the Harmonized System (HSN), which state that explicit classifications (such as plastic under HSN 3926) override general classifications (such as garments under HSN 6201).
Therefore, the authority held that Aristocrat Industries Private Limited’s PVC raincoats drop under HSN 3926 and draw an 18% GST rate under Entry No. 111 of Schedule III of Notification No. 01/2017-Central Tax (Rate)
| Applicant Name | Aristocrat Industries Private Limited |
| GSTIN of the applicant | 19ABACA3297R1ZX |
| Date | 27.02.2025 |
| West Bengal GST AAR | Read Order |
