In re Pradeepkumar Gaurishankar Trivedi (GST AAR Gujarat)
M/s. Pradeepkumar Gaurishankar Trivedi, operating under the trade name New Aashi Rainwear, is registered under GST and manufactures, imports, exports, and sells rainwear, including PVC/plastic raincoats, nylon raincoats, rubberized rainwear, and other plastic clothing items. Their product range includes coats, trench coats, windcheaters, and rain jackets for men, women, and children. The applicant follows a detailed manufacturing process for PVC raincoats involving procurement of raw materials (PVC sheets, plastic buttons, zippers, draw cords, and stoppers), panel cutting, printing, welding or chemical bonding to ensure waterproofing, and final packing for dispatch.
The applicant had been levying GST at 18% under HSN 39269099, classifying the PVC raincoats as articles of plastics. However, it was observed that competitors were charging GST at 5% under HSN 6204, leading to a loss of market share. Consequently, the applicant sought an advance ruling on two issues: the correct HSN code for PVC/plastic raincoats and the applicable GST rate.
The applicant argued that their product should fall under Chapter 62 (Articles of Apparel) rather than Chapter 39 (Articles of Plastics). They noted that the Customs Tariff Act, 1975, specifically mentions raincoats under HSN 6201 (Men’s/Boy’s) and 6202 (Women’s/Girl’s) and contended that PVC is a man-made fibre akin to polyester or other synthetic textiles. They relied on dictionary definitions, the Plastic Waste Management Rules, and the Tenth Edition of Textile Terms and Definitions to classify PVC as a textile material. The applicant also cited Supreme Court precedents (Porritts & Spencer (Asia) Ltd., 1978) and previous rulings by GST and Customs AARs (New ZEAL Fashion Wear (P) Ltd.) to argue that PVC raincoats should be treated as textile apparel and attract GST at 5% depending on the sale value.
