What is the appropriate classification and rate of GST applicable on supply of Plastic Toys under GST?

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
D/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/10/2021
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2020/AR/50)
Date: 20.01.2021

Name and address of the
applicant
: M/s. I-tech Plast India Pvt.Ltd.,
Survey No.108-109, BhavnagarRajkot Highway, Shampara,
Bhavnagar.

GSTIN of the applicant : 24AABCI1401P1ZT

Date of application : 30.11.2020.

Clause(s) of Section 97(2) of
CGST/ GGST Act, 2017, under
which the question(s) raised.
: (a) classification of any goods or
services or both;
(d) admissibility of input tax credit of
tax paid or deemed to have been
paid.

Date of Personal Hearing : 23.12.2020(Through online hearing)

Present for the applicant : Shri Nishant Shukla

B R I E F FA C T S

The applicant M/s. I-tech Plast India pvt.ltd., Survey No.108-109, Bhavnagar-Rajkot Highway, Shampara, Bhavnagar is engaged in the business of manufacturing and supply of toys made up of plastic and/or rubber or both wherein essentially plastic is the main component. The applicant has stated that as per their understanding, the plastic toys manufactured and supplied bythe applicant would squarely be eligible to be classified under Chapter Heading 9503.

2. The applicant has submitted that the Central Government has issuedNotification No.01/2017-Central Tax(Rate) dated 28.06.2017 containing Schedules-I to VI which specifies goods which will be levied to tax at the rate of 2.5%, 6%, 9%, 14%, 1.5% and 0.125% and that the said notification has beenamended from time to time. The applicant has stated that the relevant entriesin the respective Schedules of Notification No.01/2017-Central Tax(Rate) dated28.06.2017 as amended till date, for the purpose of the applicant’s product in question reads as under:

The applicant has stated that the aforesaid Notification contains the following explanation:

(iii) “Tariff item”, “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

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