AAR: Industrial Safety Belts not exceeding Rs. 1000 sale value, taxable at 5% GST:

Nov 7, 2022 | GST FAQ, News | 0 comments

AAR: Industrial Safety Belts not exceeding Rs. 1000 sale value, taxable at 5% GST:


The West Bengal Authority for Advance Ruling (AAR), has recently, while deciding upon an application filed before it, held that industrial safety belt not exceeding rs. 1000 sale value is taxable at 5% GST.

The aforesaid observation was made by the AAR when an application was filed before it by SinghaBaheni Industries, engaged in the manufacturing of Industrial Safety Belts and full Body Harness.

With the applicant submitting that while supplying the aforesaid items, it charges tax at 5% sale value of which does not exceed Rs.1000/- per piece and at 12% where sale of each piece exceeds Rs.1000, the present application before the AAR filed under sub section (1) of section 97 of the GST Act and the rules made there, raised the question as to what shall be the rate of tax and HSN Code of manufacturing of Industrial Safety belt and Harness.

The aforesaid question on which the advance ruling was sought for, being found to be covered under clause (a) of sub-section (2) of section 97 of the GST Act, along with the applicant stating thatthe question raised in the application had neither been decided by nor was pending before any authority under any provision of the GST Act, the AAR Bench consisting of Brajesh Kumar Singh and  JoyjitBanik, observed as follows :

“The moot point to be decided in the instant case is the classification of the item, viz. industrial safety belt. It is found that there is no specific heading in the tariff for classification of industrial safety belt manufactured by the applicant. However, we have expressed our view that the item, in the light of its use may be termed as life belt.”

“It thus appears that the item industrial safety belt made of nylon, which may be termed as life belt, can be covered under Tariff item 6307 20 90. Further, serial number 224 of Schedule I and serial number 171 of Schedule-II, respectively of Notification No. 01/2017- Central Tax (Rate) dated 28.06.2017, as amended from time to time, and corresponding State Tax Notification No. 1125-F.T. dated 28.06.2017, as amended, notifies the rate of tax of ‘other made up of textiles article”, the AAR Bench added.

Thus, pronouncing it’s ruling the Authority for Advance Ruling (AAR), held:

“The item industrial safety belt manufactured by the applicant would be classified under chapter sub-heading 6307 20 90 and tax would be levied at 5% of item sale value not exceeding Rs.1000/- per piece and at 12% in case where sale value exceeds Rs.1000/- per piece.”

Source from = https://www.taxscan.in/industrial-safety-belt-not-exceeding-rs-1000-sale-value-taxable-at-5-gst-aar/222590/



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