In re Prayagraj Dyeing & Printing Mills Pvt. Ltd. (GST AAR Gujarat)
Question: Whether Bagasse based Particle Board manufactured with a composition of 75% of bagasse, 25% of wood particles and 5 kgs of resins falls under serial No.92 of Schedule II [GST rate 12%) or under Sr. No. 137A of Schedule III (GST rate 18%) of the Notification No. 01/2017 – Integrated Tax [Rate] dated 28.06.2017?
Answer: Bagasse based Particle Board, which is a composition of 75% of bagasse, 25% of wood particles and 5 kgs of resins, will fall under entry at Sr. No. 137A in Schedule III to the Notification No. 01/2017- Central Tax (Rate), dated 28.06.2017/ Notification No. 01/2017 – Integrated Tax [Rate] dated 28.06.2017 and attract GST rate of 18% (CGST: 9% & SGST: 9%).
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING,GUJARAT
2. The Applicant, vide Annexure ‘A’ attached with Form GST ARA-01 dated 19.04.2018, mentioned their queries as under:
QUERRY
Whether Bagasse based Particle Board manufactured with a composition of 75% of bagasse, 25% of wood particles and 5 kgs. of resins falls under serial No.92 of Schedule II [GST rate 12%) or under Sr. No. 137A of Schedule III (GST rate 18%) of the Notification No. 01/2017-Integrated Tax [Rate] dated 28.06.2017?
2.1 The Applicant, vide attached sheet “Annexure B” to their application dated 06.04.2018, has submitted the Statement of relevant facts having a bearing on the question raised is as follows:-
(i) M/s Prayagraj Dyeing & Printing Mills Pvt. Ltd. is registered under Goods and Service Tax Act, 2017 vide GST1N 24AABCP4044R1Z5 (herein after referred as “the applicant”] and is planning to manufacture bagasse-based particleboard. The basic raw materials used for manufacturing of bagasse -based particleboard are “Bagasse” & “Rasins”. Due to shortage of basic raw material “Bagasse” in the market, the applicant sometime mixes some amount of wood particles, which may extent to maximum 25% of the total particle-board composition.
(ii) The rate of GST to be levied under Goods and Services Tax Act, 2017 is provided in Notification No.01/2017- IGST (Rate) dtd. 28.06.2017. Sr. No. 92 of Schedule-II of Notification No.01/2017- IGST (Rate] dtd. 28.06.2017 provides for 12% GST rate for “Bagasse Board” falling under Chapter 44 or any chapter of the Customs Tariff Act. The relevant Sr. No.92 Schedule-II of Notification No.01/2017- IGST (Rate) dtd .28.06.2017 is reproduced hereunder:
