The Joint Commissioner, Central Goods and Services Tax Department, Madurai, last week clarified the rate of tax applicable to nonwoven bags & cotton bags under the current GST regime.
As per the clarification issued by the Joint-Commissioner, the said goods are falling under the Chapter Heading 63, i.e, “Other made up textile articles; sets; worn clothing; and worn textile articles.”
It was further clarified that nonwoven bags and rice bags up to the sale value of Rs. 1000 would attract five percent GST. If the sale value is above Rs. 1000, 12 percent tax is applicable.
In case of cotton bags and rice bags, the rate of tax applicable is 5 percent when the sale value is up to Rs. 1000. The same would be subject to 12 percent GST when the sale value exceeds Rs. 1000.
