2018(08)LCX0095(AAR)
AAR-KARNATAKA
M/s V PAC CARTONS INDIA PVT LTD
decided on 06/08/2018
THE AUTHORITY ON ADVANCE
RULINGS
IN KARNATAKA
GOODS AND SERVICES TAX
VANIJYA THERIGE KARYALAYA, KALIDASA ROAD
GANDHINAGAR, BENGALURU - 560009
Advance Ruling No. KAR ADRG 17/2018
Date : 06-08-2018
Present:
1. Sri. Harish Dhamia,
Additional Commissioner of Central Tax, .... Member (Central Tax)
2. Dr. Ravi Prasad M.P.
Joint Commissioner of Commercial Taxes .... Member (State Tax)
| Name and address of the applicant | M/s V PAC CARTONS INDIA PVT LTD. No. 4,5,6, Amaravathi Layout, Agara Road, Horamavu, Bengaluru 560043 |
| GSTIN or User ID | 29AACCV9320M1ZT |
| Date of filing of Form GST ARA-01 | 01.02.2018 |
| Represented by | Sri Usman Khan, Director |
| Jurisdictional Authority - Centre | The Commissionerate- Bengaluru East, East Division-5, BMTC Building, HAL Airport Road, Dommaluru, Bengaluru- 560071 |
| Jurisdictional Authority - State | NA |
| Whether the payment of fees discharged and if yes, the amount and CIN | Yes, discharged fee of Rs.10,000/- CGST : Rs.5,000/- and KGST: Rs.5,000/- vide CIN UTIB18022900004484 dated 01.02.2018 |
ORDER UNDER SUB-SECTION (4) OF
SECTION 98 OF CENTRAL GOODS
AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION
98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017
1. M/s V pac cartons, (called as
the Applicant hereinafter), having its registered office at No. 4,5,6, Amaravathi Layout, Agara Road, Horamavu, Bengaluru 560043, having GSTIN number
29AACCV9320M1ZT, has filed an application for Advance Ruling under Section 97 of
CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017 read with Rule 104 of CGST Rules
2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000-00
each under the CGST Act and the KGST Act.
2. The Applicant is a private limited company engaged in the manufacture of
plywood pallets, plywood boxes, corrugated boxes, and paper packaging products
and is registered under the Goods and Services Act, 2017. He is desirous of
knowing the GST rate applicable on the finished goods Pallets and Box Pallets
to enable him to levy and collect the correct rate of applicable GST.
3. The applicant furnishes some facts relevant to the stated activity:
a. The applicant states that he is a manufacturer engaged in the manufacture of
Plywood pallets and plywood boxes and corrugated boxes as individual items as
per the size and requirements of the buyer and thus make a composite and
combined sale as per the purchase order placed on them by the purchasers. During
such process, they make use of the plywood and wood in the manufacture of the
pallets, which is the basic weight holding platform for covering the sleeve of
the corrugated box and serves as a fragile component in packing for the
customers end product safe movement.
b. The GST rate of tax structure in respect of plywood sheet having HSN 4412 is
18% under Chapter 44 and Serial No. II-122 and the same is used as raw material
for the manufacture and he states that their finished product results finally as Pallets and Box Pallets having the HSN 4415 for which the GST tax rate is 12%
and being charged to all their suppliers regularly. Since, the GST rate of tax
for plywood sheet is @ 18% and which input is claimed by them and in respect of
Plywood pallets and plywood boxes, the GST rate of tax charged to the vendor
must be @ 12%, considering the raw material and the finished goods, the rate of
GST and the HSN are different, but in common parlance the material used is the
plywood for the end product pallets and box pallets.
FINDINGS & DISCUSSION:
4. The submissions of the applicant have been verified.
(a) HSN entry 4415 reads as under :
Packing cases, boxes, crates, drums and similar packings, of wood; cable drums
of wood; pallets, box pallets and other load boards, of wood; pallet collars of
wood. And entry no: 4415.20 reads Pallets, box pallets and other load boards;
pallet collars
Hence in view of the above pallets and box pallets are covered under HSN code
4415.20.00.
(b) Entry No. 97 of Schedule II of Notification No. 01/2017 Central Tax (Rate)
dated 28.06.2017 reads as under:
HSN 4415 - Packing cases, boxes, crates, drums and similar packings, of wood;
cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet
collars of wood - 6%
Entry No. 97 of Schedule II of Notification No. 01/2017 State Tax (Rate) dated
28.06.2017 reads as under:
HSN 4415 - Packing cases, boxes, crates, drums and similar packings, of wood;
cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet
collars of wood 6%
Hence the tax rate applicable on the pallets and box pallets is 6% under
Central Goods and Services Tax Act and 6% under the Karnataka Goods and Services
Tax Act. 5. In view of the foregoing, we rule as follows
RULING
The commodity pallets and box pallets are covered under HSN 4415 20 00 and covered under entry no. 97 of Schedule II of Notification No.1/2017- Central Tax (Rate) dated 28.06.2017 and entry no. 97 of Schedule II of Notification No.1/2017- State Tax (Rate) dated 28.06.2017 and hence the tax rates applicable on the same are 6% under the Central Goods and Services Tax Act and 6% under the Karnataka Goods and Services Tax Act.
Harish Dharnia)
(Member)
(Dr.Ravi Prasad.M.P.)
Member
Place: Bengaluru
Date: 06.08.2018
To,
The Applicant
Copy to:
The Principal Chief
Commissioner of Central Tax, Bangalore Zone, Karnataka.
The Commissioner of Commercial Taxes, Karnataka, Bengaluru.
The Commissioner of Central Tax, Bangalore East Commissionerate, Bengaluru.
The Asst. Commissioner, LVO - , Bengaluru.
Office Folder.
Equivalent .