In re Lamifabs & Papers Private Limited (GST AAR Maharashtra)
The Maharashtra Authority for Advance Ruling (AAR) has ruled that the product “Geo Membrane for Water Proof Lining – Type-II as per IS 153151:2015” manufactured by Lamifabs & Papers Private Limited is classifiable under Tariff Item 5911 1000 of the GST Tariff, which falls under Chapter 59 (Textile products and articles, for technical uses). The AAR further clarified that this product attracts a GST rate of 12%.
Lamifabs & Papers Private Limited sought a ruling on the HSN code and the applicable GST rate for its Geomembrane product, questioning whether it should be classified under Chapter 39 (Plastics and articles thereof) or Chapter 59.
The AAR’s analysis of the manufacturing process, similar to the Hari Om Flexipack Industries case, highlighted that while the raw material is plastic, the process involves weaving plastic strips (less than 5mm) into a fabric, which is then laminated. This weaving process, according to the Supreme Court’s precedent, results in a textile.
The AAR reiterated that Chapter Heading 5911 specifically covers technical textiles, and Geomembrane, meeting IS standards and used for specialized applications like pond liners, fits this description. The Ministry of Textile and the Bureau of Indian Standards also categorize Geomembrane under technical textiles.
Following the principle of specific heading prevailing over general heading, and considering the technical nature and specific use of Geomembrane, the AAR concluded that it is appropriately classified under Tariff Item 5911 1000.
Regarding the GST rate, the AAR referred to the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017. Upon examining the schedules within this notification, the AAR determined that goods classified under Tariff Item 5911 1000 attract a GST rate of 12%, as specified in Schedule IV of the notification.
Therefore, the AAR ruled that the HSN code for “Geo Membrane for Water Proof Lining – Type-II as per IS 153151:2015” is 5911 1000, and it is subject to a GST rate of 12%.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
