The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that 12% GST payable on PVC Carpet Mat.
The applicant, Soft Turf had sought an advance ruling regarding the classification of PVC carpet mats manufactured by them. The classification was sought on the issue “Whether PVC carpet mats manufactured and supplied by the applicant will be classifiable under tariff item 5705.00.49 of CTA and attract a tax rate of 12% as per entry 146 of Schedule II of Notification No. 1/2017 – Integrated tax Rate dated 28/6/2017”
As there was a difference of opinion the same was referred to the appellate authority for advance, ruling under section 98(5) of the GST Act. Section 98(5) of CGST/SGST Act specifies that where the members of the Authority differ on any question on which the advance ruling is sought, they shall state the point or points on which they differ and make a reference to the Appellate Authority for hearing and decision on such a question.
The applicant contends that the carpet mats manufactured are classifiable under Tariff item 5705 0049 of customs tariff Act 1975 and in view of the entry, 146 of the Schedule II of the notification 01/2017 Integrated tax date 28 June 2017, the applicable rate of CST on the PVC carpet is 12%. It is also submitted that this application s preferred on the apprehension that the activity could be considered as a supply of goods under SI Ne: 43 of Schedule IV of the Notification no: 1/2017 Integrated tax (rate) pertaining to Floor coverings made of plastic, which attracted rate of tax at the rate of 28% up to 14/11/2017 and at the rate of 18% from 15/11/2017 as per si no 104A of Schedule III inserted by notification No: 43/2017-integrated Tax (Rate) dated 14/11/2017.
The coram of Shyam Raj Prasad and Anand Prasad ruled that impugned goads viz. PVC carpet Mat would fall in the Customs Tariff heading 3918 and the applicable rate of GST would be 18% (9% each of CGST and SGST). However, this order is restricted to the types of PVC floor coverings/Carpet/Mats being manufactured by the Applicant as per the manufacturing process submitted and whose sample was produced.
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