In re USG Boral Building Products (India) Private Limited (GST AAR Rajasthan)
We find that the applicant has submitted the technical specification with respect to contents of the impugned product. The applicant submitted that the proposed new variant of Gypsum Board is made-up of Gypsum, glass fibre and additives, the main raw material is Gypsum which is procured from the mines, whereas, GRG board is made up of Phosphogypsum, which is a by product of phosphoric acid plant therefore, the proposed new variant of Gypsum board to be manufactured by the applicant cannot be called as “Glass-fibre Reinforced Gypsum Board (GRG)” and cannot be classified in Serial No. 92 of Schedule II of Notification No. 1/2017- Central Tax (Rate) dated 28 June 2017 which provides specific rates for GRG board.
AAR held that new variant of gypsum board intended to be manufactured by the Applicant as per the specifications mentioned in Exhibit-2 could not be classified as Glass-fibre Reinforced Gypsum Board (GRG Board) and charged to GST at the rate of 12%.
FULL TEXT OF THE ORDER OF AUTHORITY OF ADVANCE RULING, RAJASTHAN
Note: 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.
> 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 USG Boral Building Products (India) Private Limited, SP 73 75 76, RIICO Industrial Area, Khushkera, Bhiwadi, Alwar, 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;
> Further, the applicant being a registered person (GSTIN is 08AABCL1984A1ZR as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling.
1. SUBMISSION AND INTERPRETATION OF THE APPLICANT:
1. The Applicant is a Private Limited Company and has its office at SP 73 75 76, RIICO Industrial Area, Khushkera, Bhiwadi, Alwar, Rajasthan, 301019, registered in the state of Rajasthan vide GST Registration No. 08AABCL1984A1ZR.
2. The Applicant is engaged in the business of building materials and has its manufacturing operations in the state of Rajasthan and Andhra Pradesh, with major manufacturing activities based in the state of Rajasthan. Further, the Applicant has trading warehouses situated in ten states across India.
3. The Applicant is also engaged in import and sale of goods, wherein it imports goods from its overseas parent Company and supplies in domestic market through its trading warehouses.
4. One of the major product being dealt in by the Applicant is paper reinforced gypsum board, which is classifiable under tariff item 6809 11 00 and is subject to GST at the rate of 18%.
5. The Applicant is contemplating to commence production of a new variant of gypsum board and wishes to understand whether the same could be classified as GRG board classifiable under tariff item 6809 19 00 but attract lower rate of GST under Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017. Accordingly, the Applicant is submitting herewith an application requesting advance ruling with respect to said classification.
6. The specifications of new variant of gypsum board proposed to be manufactured are as follows:-
> The board would have a composition of gypsum plaster and glass fibre forming rectangular/ square structure of regular dimensions with the following level of length, width and thickness:
