CA PARTH SHAH (In Practice) (1951 Points)
16 February 2020We are selling ladies bags and purse. Our products are made of cotton on front side and artificial leather at the back side of the bag.
HSN codes for leather bags is 4202. -18 %
HSN codes for Hand bags and shopping bags of cotton is 42022220- 12% Which HSN shall be applicable for our product. ?
RAJA P M
("Do the Right Thing...!!!")
(127911 Points)
Replied 17 February 2020
ARS BHARATHI
(Executive in gst department)
(274 Points)
Replied 17 February 2020
CA PARTH SHAH
(In Practice)
(1951 Points)
Replied 17 February 2020
We are at presently collecting 18%.
CA PARTH SHAH
(In Practice)
(1951 Points)
Replied 17 February 2020
Ok. I beleive selling point ofthe product is not leather but the front side of the product which is displayed online to the customer and designing of the product is done on cotton portion. Customer will take decision based on the designing of the product since seller sells on the online portals and his own website
So I believe that product can be primarily classified as cotton bag and not the leather bag. so it can taxed under HSN 42022220 @ 12%
CA PARTH SHAH
(In Practice)
(1951 Points)
Replied 18 February 2020
What else details do you need?
Cotton on the front side is not ornamental in nature. Its the selling point of product as main designing is done on cotton part of the product.
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