Source: www.fibre2fashion.com
Polyvinyl chloride (PVC) raincoats shall be classified under HSN 3926 as plastic articles and attract a goods and services tax (GST) of 18 per cent, the West Bengal Authority for Advance Ruling (AAR) recently ruled responding to applications filed by Dollar and Aristocrat brands.
PVC, being highly durable and water-resistant, is an ideal material for crafting raincoats as protective outerwear.
Aristocrat argued that PVC raincoats are functionally made as protective outerwear and must be included under HSN Code 6201 as apparel articles.
Aristocrat’s counsel referred to a ruling by the Customs Authority for Advance Rulings (CAAR) in the case of NZ Seasonal Wear Pvt Ltd that categorised similar PVC raincoats under HSN Code 6201, acknowledging them as textile garments due to their composition and intended use.
The West Bengal bench noted that synthetic polymer PVC is covered under Chapter 39 of the Customs Tariff Act, 1975. It stressed that the chapter notes of Section XI, which deals with textile articles, exclude materials that are categorised under Chapter 39, according to media reports from the state.
Even though PVC raincoats serve as protective outerwear, their composition and manufacturing process make them plastic articles instead of textile garments, the bench ruled.
