Case Law Details
In re Deepak Kumawat (GST AAR Rajasthan)
The case of Deepak Kumawat revolves around the classification of wooden frames for MDF wooden paintings under the HSN code 44140000. With specific manufacturing processes involved, clarity is sought regarding the appropriate classification and applicable GST rate.
Deepak Kumawat, engaged in the manufacturing of MDF wooden paintings, raises a query concerning the classification of wooden frames used in their products. The process involves purchasing MDF boards, cutting them to specific sizes, printing designs on art paper, and pasting them onto the boards to create the final product.
The classification of goods under the Harmonized System of Nomenclature (HSN) plays a crucial role in determining applicable taxes and regulations. In this case, the applicant seeks clarification on whether the sale of wooden frames aligns with HSN code 44140000.
The applicant’s manufacturing process suggests that the wooden frames are integral to the final product, MDF wooden paintings. However, the specific characteristics of the frames and their intended use influence their classification under the HSN.
Deepak Kumawat’s request for withdrawal of the Advance Ruling Application indicates their attainment of clarity regarding the classification of wooden frames. Consequently, no ruling is issued in this matter.
This case underscores the importance of seeking clarity on product classification under the HSN to ensure compliance with GST regulations. It also highlights the significance of understanding manufacturing processes and product characteristics in determining appropriate classifications for tax purposes.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,RAJASTHAN
Note 1: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling, constituted under Section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
Note 2: At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the “GST Act”.
The issue raised by M/s DEEPAK KUMAWAT, Ratan Nagar, 115, Dher Ka Balaji, Sikar Road, Jaipur – 302039, Rajasthan (hereinafter “the applicant”) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2)(a) given as under:
(a) Classification of any goods or services or both
(b) Applicability of a notification issued under the provisions of this Act
A. SUBMISSION OF THE APPLICANT(in brief):-
The applicant is engaged in manufacturing of MDF wooden paintings. They are selling Goods of Wooden frames so they want to know that whether their goods is falling under HSN=44140000.
B. INTERPRETATION AND UNDERSTANDING OF APPLICANT ON QUESTION RAISED (IN BRIEF)
As per the applicant for manufacturing MDF wooden painting we follow below process:-
1. We purchase MDF boards.
2. Then we used to cut MDF boards according to Specific sizes of paintings.
3. After that according to order we print the design on our digital printing machine on 250 gsm art paper.
4. Then we paste above printed paper on cutted MDF boards and our final product i.e painting is ready for sale.
Now we want to know that under which HSN we should sale our product and GST Rate.
C. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:-
Whether selling Goods of Wooden frames is falling under HSN=44140000?
D. WITHDRAWAL OF APPLICATION
The applicant vide their letter dated 08.02.2024 requested to withdraw the Advance Ruling Application filed before the authority as now they have clarity about their product’s classification.
E. FINDINGS, ANALYSIS & CONCLUSION:
The Applicant vide their letter dated 08.02.2024 has requested to withdraw the Advance Ruling Application filed before the authority.
Since the applicant has requested for withdrawal of the application therefore, their request to withdraw the application is considered. Hence, no ruling is given.
