28% GST Payable On Supply PVC Floor Mats For Cars: AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that 28% GST is payable on the supply of PVC floor mats for cars.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the floor mats used for four-wheel motor vehicles (cars) supplied by the applicant are principally for use in motor vehicles.The applicant is in the business of manufacturing and supplying floor mats for four-wheel motor vehicles (cars). The floor mats are essentially made of PVC material.The applicant sought an advance ruling in respect of the appropriate classification and rate of GST applicable to the supply of PVC floor mats (cars) under the CGST and SGST.The applicant relied on the advance ruling given in the case of M/s. Stinzo Automotive (P) Ltd., in which the Haryana AAR ruled that the PVC floor mats, used for motor vehicles, would fall within the ambit of 390410.The AAR noted that CTH 390410 clearly provides that it covers items by the description of polyvinyl chloride, not mixed with any other substances. This not being the case in the goods manufactured by the applicant, the question of the PVC mat of the applicant falling within the ambit of 390410 does not arise. As is evident, for the goods to fall within the ambit of 390 I to 3914, they have to be in primary form. The goods in relation to waste, parts, and scrap, as well as semi-manufactured items and articles, would appropriately have to be classified from CTH 3915 onward. Hence, the goods manufactured by the applicant, i.e., PVC floor mats for motor vehicles, would not fall within the ambit of CTH 3904.The AAR held that PVC floor mats for use in cars supplied by the applicant are classifiable under CTH 8708.Applicant’s Name: Manishaben Vipulbhai SorathiyaDate: 09/03/2023Click Here To Read The Ruling

28% GST Payable On Supply PVC Floor Mats For Cars: AAR

Mariya Paliwala

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