PVC Raincoats Attract GST Rate of 18%: WBAAR

The applicant, Waterproof Products Manufacturers & Traders Welfare Association, manufactures and trades waterproof products. The applicant filed an application under section 97 of the GST Act, asking for an advance ruling for the following questions:

What is the HSN code as well as GST Rate of tax of Raincoat made of PVC sheet under the GST Act?

The applicant submitted that a PVC raincoat is an outer jacket that is waterproof and is made using polyvinyl chloride (PVC). The PVC rolls/sheets, where the sheet goes through a cutting process. In the cutting process, the rolls or the sheets are cut into smaller sheets for the front and back portions, sleeves, pockets, etc. The applicant submits the finished product, which is sent for packaging and is sent to the warehouse so that it can be dispatched to distributors, retailers, wholesalers, etc.

As per the applicant, the Raincoats made of PVC sheeting would fall under Chapter 62 [Schedule – I] of Notification no. 1/2017 dated-Central Tax (Rate), dated 28th June, 2017 and are taxed at 5% GST Rate, if the sale price is less than Rs 1000 per piece and if the sale price is more than this, then the GST would be 12%.

As per the West Bengal Authority for Advance Ruling (WBAAR), the raincoats made of PVC are not included under the heading no. 620140. Instead, they are included under the heading no. 392620. As per the authority, the HSN code of such a raincoat would fall under Entry no. 111 of Schedule III. The GST Rate applicable to PVC Raincoats will be 18%, i.e., 9% CGST + 9% SGST.