The West Bengal Bench of Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on supply of PVC raincoat.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the item PVC raincoat, in common parlance, is known as apparel. The PVC raincoat being an apparel, which is primarily composed of polyvinyl chloride (PVC), would be classified under HSN 3926 20 as Articles of apparel and clothing accessories (including gloves, mittens and mitts).
The applicant, Aristocrat Industries, and Dollar Garments is in the business of manufacturing and supplying raincoats primarily composed of polyvinyl chloride (PVC) which is a synthetic polymer.
These PVC raincoats are produced by cutting large PVC rolls into sections that correspond to the various components of the raincoat, including the front panel, back panel, sleeves, and pockets. To maintain the waterproof quality, traditional stitching is avoided, as needle perforations would compromise the water resistance of the garment.
Instead, the applicant employs a specialized fusion method wherein components are thermally or chemically bonded to create a seamless, non-woven structure that enhances the waterproof integrity. Additional features such as polyester zippers, drawcords, buttons, and plastic stoppers are attached to finalize the product, which is then distributed to the market as a finished raincoat.
The applicant sought the advance ruling on the issue of whether PVC raincoats should be classified as plastic (HSN Code 3926) or textile (HSN Code 6201) items under GST?
The applicant sought the advance ruling in respect of the GST rate on PVC raincoat. If the price of PVC raincoat comes under Rs. 1000 then does it attract 5% tax on it.
The AAR held that PVC sheets cannot be regarded as woven fabric. Even in common parlance, the item PVC sheet is not considered as textile materials. We are therefore unable to accept the contention of the applicant that the item PVC raincoat would be classified under HSN 6201 40 10 since to qualify to be an item under chapter 62, it must be an article of textile fabric.
Ruling Details
Applicant Name: Aristocrat Industries Private Limited
Date: 27/02/2025
