PVC Raincoats to Attract 18% GST: WBAAAR Confirms Ruling

The appellant, M/s. Dollar Industries Limited manufactures and supplies raincoats, made of polyvinyl chloride (PVC), which have water-resistant properties. The appellant sought an advance ruling before the West Bengal Appellate Authority for Advance Ruling (WBAAR) for the following questions:

Question 1: Whether PVC raincoats should be classified as plastic (HSN Code 3926) or textile (HSN Code 6201) items under GST?

Question 2: What should be the GST rate of PVC raincoat? If the price of PVC raincoat comes under Rs. 1000/- then does it attract 5% tax on it?

The WBAAR observed the product and the manufacturing process, and it found that the raincoats are made by sealing sheets of PVC, which cannot be regarded as a woven fabric. It said that PVC is not a textile material. Accordingly, the WBAAR held in its ruling dated 27.02.2025, that PVC raincoats fall under Heading 3926 and attract 18% GST.

The appellant filed an appeal challenging this ruling, saying that PVC raincoats fall under 6201. The appellant submitted that the advance ruling in the case of NZ Seasonal Wear Pvt Ltd held that PVC raincoats are classified under HSN Code 6201, treating them as textile garments.

The West Bengal Appellate Authority for Advance Ruling (WBAAAR) observed the case and concluded that PVC is a synthetic polymer of plastic and not a woven textile. The Authority also found that the PVC used is made through a fusion process and does not involve extrusion weaving.

Therefore, WBAAAR upheld the decision of WBAAR and stated that PVC raincoats would be classified under HSN Code 3926 and would attract 18% GST, vide entry no. 111 of Schedule-III of CGST Rate Notification No. 1/2017-Central Tax (Rate), dated 28-06-2017, read with corresponding WBGST Rate Notification No. 1125-F.T., dated 28-06-2017, as amended from time to time.