Page 121 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : GLOBAL TEXTILE ALLIANCE INDIA PVT. LTD. 47
• All blended woven fabrics also attract 5% GST with ITC facili-
ty under GST and are respectively classifiable under Chapters
52, 54 & 55 based on their predominant nature of textile mate-
rials. [As per Note 2(A) of Section XI, Goods classifiable in
Chapters 50 to 55 or in heading 5809 or 5902 and of a mixture
of two or more textile materials are to be classified as if con-
sisting wholly of that one textile materials which predomi-
nates by weight over any other single textile material];
• Note 9 of Section XI of the Central Excise Tariff Act, 1985 reads
as “The woven fabrics of Chapters 50 to 55 include fabrics
consisting of layers of parallel textile yarns superimposed on
each other at acute or right angles. These layers are bonded at
the intersections of the yarns by an adhesive or by thermal
bonding;
• As per the exclusion clause of Chapter Notes 2(a)(1) & 5(a) of
Chapter 59, the textile fabrics, which are subjected to some
special treatment by way of impregnation/lamination/cover-
ing/coating and the effect of such change cannot be seen with
naked eye, are not classifiable under Chapter 5903 & 5907 re-
spectively. Accordingly, such fabrics wherein the very nature
of fabrics is lost and turns into a different identifiable product
of a kind suitable for industrial use. E.g. Imitation leather fab-
rics, Painting canvas, Tracing cloth, Book binding cloth, Floor
covering, Textile wall covering, Conveyor belt etc., are classi-
fiable under Chapter 59 and thereby attracting 12% GST Rate.
However, when the texture of fabrics does not change after
the processes of impregnation/lamination/covering/coating
and the effect of such change in texture cannot be seen with
the naked eye, the products are respectively classifiable under
Chapter 52, 54, 55 or 60 and 5% GST is chargeable.
• All knitted fabrics, irrespective of their constituent materials
i.e., Cotton (100%) or 100% of Polyester/Viscose/Rayon/
Nylon or blended of any nature, attracts 5% rate with ITC
facility under GST and classifiable under Tariff Heading from
60.
By applying the above facts to the present case, the deciding factor
to find the exact classification of the above fabrics is whether they
undergone any significant change in texture or not, after impregna-
tion/lamination/covering/coating. The products are classifiable
under their respective Chapters of their constituent textile materials
and leviable at 5% GST rate, when the fabrics do not undergo any
significant change in texture. Otherwise, are classifiable under
5903/5907, which attract 12% GST rate.
(e) Covers of Pillow, Latex Block, Mattresses : As per the write
up given by the applicant, the products are very much identifiable
in the respective Chapter sub-heading 6304 as other made up arti-
cles of textiles, which attracts GST of 5% when it is sold for <Rs.
1000/- & 12% when the selling price is >Rs. 1000/-.
(f) Foot Runner and Pillow Sheet : As per the write up given by
the applicant, the products are very much identifiable in the respec-
tive Chapter sub-heading 6302 as other made up articles of textiles,
which attracts GST of 5% when it is sold for <Rs. 1000/- & 12%
when the selling price is >Rs. 1000/-.
GST LAW TIMES  6th August 2020  121