Page 132 - GSTL_6th August 2020_Vol 39_Part 1

58 GST LAW TIMES [ Vol. 39
5402 39 10 --- Polypropylene filament yarn
5402 39 20 --- Acrylic filament yarn
5402 39 90 --- Other
…………… …. ……………………………………………………………………
5406 00 - Man-made filament yarn (other than sewing thread), put
up for retail sale :
5406 00 10 --- Synthetic filament yarn
5406 00 20 --- Artificial filament yarn

It is observed that the rate notification provides the rate based on the four-digit
level classification of these yarns. This yarn is captively used in the manufacture
of fabric. In future, may go for commercial sales also. Therefore, the classification
will vary depending on whether it is put up for retail sale or not.
It is further noticed that whether the yarns are put up for retail sale or
otherwise i.e., ‘All Synthetic filament yarn such as nylon, polyester, acrylic, etc.
falling under CTH or Group ‘5402, 5404, 5406’ is leviable to CGST @ 9% vide S.
No. 159 of Schedule III of Notification 1/2017-C.T. (R), dated 28-6-2017 and SGST
@ 9% vide S. No. 159 of Schedule III of Notification No. II(2)/CTR/532(d-4)/2017
vide G.O. (Ms) No. 62, dated 29-6-2017 up to 12th October, 2017 and thereafter
leviable to CGST @ 6% as per Sl. No. 132B of Schedule-II of Notification No.
1/2017-C.T. (R), dated 28-6-2017 as amended by Notfn. No. 34/2017-C.T. (R),
dated 13th October, 2017 and SGST @ 6% as per Sl. No. 132B of Schedule-II of
Notification No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62, dated 29-6-
2017 as amended
8. In view of the above , we rule as under :
RULING
(1) ‘Knitted Fabrics’ manufactured and Supplied by the applicant is
classifiable under CTH 60. Further classification is not possible as
only further technical details are not provided. The applicable rate
is 2.5% CGST provided vide Sl. No. 221 of Schedule I of Notification
1/2017-C.T. (R), dated 28-6-2017 as amended and 2.5% SGST pro-
vided vide S. No. 221 of Schedule I of Notification No.
II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62, dated 29-6-2017.
(2) ‘Woven fabric’ manufactured and supplied by the applicant is clas-
sified under CTH 5407. Further classification is not possible as only
further technical details are not provided The applicable rate is 2.5%
CGST provided vide Sl. No. 217 of Schedule I of Notification
1/2017-C.T. (R), dated 28-6-2017 as amended and 2.5% SGST pro-
vided vide S. No. 217 of Schedule I of Notification No.
II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62, dated 29-6-2017.
(3) Woven Fabric backing with Non-woven Fabric falls under CTH
5407. Further classification is not possible as only further technical
details are not provided. The applicable rate is 2.5% CGST provided
vide Sl. No. 217 of Schedule I of Notification 1/2017-C.T. (R), dated
28-6-2017 as amended and 2.5% SGST provided vide S. No. 217 of
Schedule I of Notification No. II(2)/CTR/532(d-4)/2017 vide G.O.
(Ms) No. 62, dated 29-6-2017.
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