Satin & Taffeta Rolls Used For Printing Purpose Attract 12% GST: AAR

The Karnataka Authority of Advance Ruling (AAR) has held that the products "satin rolls" and "taffeta rolls" with sizes between 19 mm and 40 mm are classifiable under tariff heading 5807 10 20 and attract 12% GST.

The two-member bench of Kiran Reddy T. and M.P. Ravi Prasad has observed that taffeta rolls are made up of polyester yarn with an acrylic coating to protect from raveling or fraying and also to have better printing quality. Satin rolls are made up of polyester yarn with an optical or non-optical coating for brightening and removing impurities. They have plain selvedges on both sides of the fabric and are cut with hot blades to arrest fabric fraying. Thus, the products qualify to be covered under "narrow woven fabrics."

The applicant is dealing in products that are used in the garment industry for making textile garment wash care labels. The applicant procures and sells the label rolls that are not printed. Some of the vendors classified the product under HSN 5806, which attracts a GST rate of 5%, and some others under HSN 5807, which attracts a GST rate of 12%.

The applicant has sought an advance ruling on the issue of classification of products "satin rolls" and "taffeta rolls" with sizes between 19 mm and 40 mm,, which is covered under "classification of any goods or services or both."

The AAR has held that the satin rolls and taffeta rolls are narrowly woven fabrics made up of man-made fibers, i.e., polyester yarn, and thus are squarely covered under tariff heading 5807 10 20.

Applicant's Name: Mean Light Co.

Date: 29.11.2022

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