Page 128 - GSTL_26th March 2020_Vol 34_Part 4

638 GST LAW TIMES [ Vol. 34
Further, explanations to the Heading 6305 90 00, in HSN is as follows :

63.05 - Sacks and bags, of a kind used for the packing of goods (+).
6305 10 - Of jute or of other textile bast fibres of heading 5303 :
6305 20 00 - Of cotton
- Of man-made textile material :
6305 32 00 -- Flexible intermediate bulk containers
6305 33 00 -- Other, of polyethylene or polypropylene stip or the like
6305 39 00 -- Other
6305 90 00 - Of other textile materials

This heading covers textile sacks and bags of a kind normally used for the
packing of goods for transport, storage or sale.
These articles, which vary in size and shape, include in particular flexible
intermediate bulk containers, coal, grain, flour, potato, coffee or similar
sacks, mail bags, and small bags of the kind used for sending samples of
merchandise by post. The heading also includes such articles as tea sachets.
Packing cloths which, after use as bale wrappings, are roughly or loosely
stitched together at the edges, but which do not constitute finished or un-
finished sacks or bags, are excluded (heading 63.07).
5.4 We find that C.B.I. & C. vide its Circular No. 80/54/2018-GST, dat-
ed 31-12-2018, under para 7, has clarified that the goods viz. polypropylene wo-
ven and non-woven bags are classifiable under HS code 3923 and attracts GST
@18%, the relevant portion is extracted as below :
“Applicability of GST on supply of Polypropylene Woven and Non-
Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP :
7.1 Representations have been received seeking the classification and GST
rates on Polypropylene Woven and Non-Woven Bags and Polypropylene
Woven and Non-Woven Bags laminated with BOPP.
7.2 As per the explanatory notes to the HSN to HS code 39.23, the heading
covers all articles of plastics commonly used for the packing or conveyance
of all kinds of products and includes boxes, crates, cases, sacks and bags.
7.3 Further as per the Chapter note to Chapter 39, the expression “plas-
tics” means those materials of headings 39.01 to 39.14 which are or have
been capable, either at the moment of polymerization or at some subse-
quent stage, of being formed under external influence (usually heat and
pressure, if necessary with a solvent or plasticizer) by moulding, casting,
extruding, rolling or other process into shapes which are retained on the
removal of the external influence.
7.4 Thus it is clarified that Polypropylene Woven and Non-Woven Bags
and PP Woven and Non-Woven Bags laminated with BOPP would be clas-
sified as plastic bags under HS code 3923 and would attract 18% GST.
7.5 Non-laminated woven bags would be classified as per their constitut-
ing materials”.
5.5 We find the competing heading for the product is CTH 3923. For
ease of reference, the relevant chapter notes, the tariff entry and the HSN Ex-
planatory note is given below :
CHAPTER 39
Plastics and articles thereof
NOTES :
(1) Throughout this Schedule, the expression “plastics” means those
materials of headings 3901 to 3914 which are or have been capable,
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