In re Butt Baby Enterprise Private Limited (GST AAR West Bengal)
In the ruling concerning Butt Baby Enterprise Private Limited, the Authority for Advance Ruling (AAR) of West Bengal addressed the classification and tax rate of “Baby Carriers with Hip Seat.” The applicant, a manufacturer of baby carriers, sought clarification on whether their product falls under HSN code 63079099, which pertains to “Other made-up articles.” The applicant currently charged 18% GST, classifying their products under HSN code 8715, which relates to vehicles. However, given that their product is a textile item without wheels, they recognized that this classification may not be appropriate. They discovered that other suppliers categorized similar products under HSN code 6307, which attracts a lower GST rate of either 5% or 12%, depending on the sale price.
After reviewing the applicant’s detailed submission, the AAR concluded that “Baby Carriers with Hip Seat” should indeed be classified under HSN code 63079099, under Chapter 63, which covers various made-up textile articles. The AAR determined that products in this category are taxed at 5% when the sale value does not exceed ₹1,000 and 12% when the value exceeds ₹1,000. The ruling aligns with precedent cases where similar textile products were classified based on their material composition and function, rather than their incidental use related to vehicles. Therefore, the tax classification of the applicant’s product is confirmed to ensure compliance with GST regulations.
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