In re Om Vinyls Private Limited (GST AAR Gujarat)
In the case of M/s. Om Vinyls Private Limited, the Gujarat Authority for Advance Ruling (AAR) addressed the GST classification of nonwoven coated fabrics impregnated with PVC. The applicant sought clarification on whether their product falls under HSN 56031400 or other tariff headings. The AAR ruled that the nonwoven coated fabrics, despite containing nonwoven components, do not meet the criteria for classification under HSN 56031400. This classification was deemed inappropriate because the product does not derive its essential character from nonwoven fabrics, given that PVC constitutes the majority of the material by weight. The fabrics’ composition, with nonwoven at only 16% of the total weight, does not satisfy the criteria set forth for HSN 56031400, which requires the nonwoven material to be significant.
Furthermore, the AAR determined that the nonwoven coated fabrics do not fall under Chapter 50, which generally covers silk and silk blends. Instead, these fabrics are classified under Chapter 39 of the Customs Tariff Act, which pertains to plastics and articles thereof. Specifically, for products like table covers, TV covers, and washing machine covers, the classification falls under tariff item 392690, attracting an 18% GST rate. Nonwoven bags, being laminated with BOPP, would also be classified under tariff item 3923 and subject to the same GST rate. The ruling aligns with prior clarifications and rulings concerning similar products, affirming that the predominant PVC content dictates the correct classification. AAR Ruled as follows:
