In re Oruma Plastics Pvt Limited (GST AAR Kerala)
Goods and Services Tax (GST) Authority for Advance Ruling (AAR) in Kerala has issued a ruling regarding the classification and applicable tax rate for “Rooter Trainer Cups” manufactured by M/s. Oruma Plastics Pvt Ltd. The AAR concluded that these plastic cups, used for propagating rubber plants, do not qualify as agricultural implements and are instead classified under “other articles of plastic,” attracting an 18% GST rate.
Oruma Plastics Pvt Ltd, engaged in manufacturing these cups, sought an advance ruling on their classification and tax rate. The company contended that the Rooter Trainer Cups, made of reusable plastic (specifically 600cc capacity), are agricultural implements exclusively used for propagating rubber plants, a process deemed an agricultural activity. They provided a certificate from the Rubber Research Institute of India, Rubber Board, to support the claim of exclusive agricultural use and cited an earlier Kerala AAR ruling (Order No. KER/85/2019 dated 20.05.2020) where plastic cups for collecting rubber latex were classified as agricultural implements. Based on this, Oruma Plastics suggested classification under HSN 8201 90 00, covering “other hand tools of a kind used in agriculture, horticulture or forestry,” which would typically attract a lower or exempt tax rate.
