GST Rate for Polypropylene Non-woven Bags: Appellate Authority Ruling
The West Bengal Appellate Authority for Advance Ruling confirmed that non-woven bags made from fabric are taxable at 5% under HSN 6305.
- Ruling
- Appeal Case No. 02/WBAAAR/Appeal/2019 dated 13.05.2019
- Authority
- Appellate Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The company asked for the correct GST classification of non-woven bags.
- The authority ruled these bags fall under HSN 6305 33 00.
- Bags valued under Rs. 1000 per piece attract a 5% GST rate.
In short
The company asked whether their non-woven bags should be taxed as plastic goods or textile products. The authority examined the manufacturing process, which uses fabric rolls rather than raw plastic granules, to determine the correct tax category.
What has changed
How it worked before
Businesses were often unsure if these bags should be classified as plastic items, which typically carry higher tax rates, or as textile products.
What has changed
The authority decided that because the bags are made from non-woven fabric, they are textile products. This confirms a 5% GST rate for bags priced under Rs. 1000, providing clarity for manufacturers using this specific production method.
Who this affects
Manufacturers of non-woven bags who use ready-made fabric rolls to create finished products.
An example
Imagine a business, 'Eco-Carry Bags', that also makes D-cut bags from non-woven fabric rolls. They might wonder if they should pay the 5% rate confirmed in this ruling. While this ruling is not automatically their law, they can use the authority's reasoning to discuss their own classification with their local tax officer.
What you should do
This ruling only applies to the company that asked for it. If you are a manufacturer, you should review your production process and consult with your tax advisor to see if this classification applies to your specific goods before changing your tax filings.
If you do nothing
If you apply this ruling to your business without confirming your specific facts, you risk paying the wrong amount of tax. A tax officer may disagree with your classification, leading to demands for unpaid tax, interest, and potential penalties.
The terms explained
- HSN
- The Harmonized System of Nomenclature is a standardized system used to classify goods for taxation purposes.
- Non-woven fabric
- A material made from fibers bonded together by chemical, mechanical, or heat treatment rather than by weaving or knitting.
- Advance Ruling
- A formal decision provided by tax authorities to a business regarding the tax treatment of a specific transaction.
The ruling in detail
Appellate Authority for Advance Ruling
M/s U.S. Polytech
Appeal Case No. 02/WBAAAR/Appeal/2019 dated 13.05.2019 · West Bengal
Questions before the authority
- Classification of and Rate of Tax applicable on Polypropylene Non-woven Bags
Facts
The Appellant manufactures Polypropylene Non-woven bags by purchasing ready-made non-woven fabric in rolls. The fabric is then folded, sealed using ultrasonic radiation, and cut into specific shapes like D-cut or Loop Handle bags. The Appellant sought a ruling on the correct HSN classification and GST rate for these bags.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification and tax rate of PP Non-woven bags | HSN 6305 33 00; 5% GST Applicable for bags with a value not exceeding Rs. 1000 per piece |
The Appellate Authority set aside the original Advance Ruling, holding that the bags are classifiable under HSN 6305 33 00. Consequently, the bags are taxable at the rate of 5% for items with a value not exceeding Rs. 1000 per piece.
Reasoning
The Authority determined that the bags are made from non-woven fabric classified under HSN 5603, which constitutes a textile material. It distinguished this from the original ruling, which incorrectly assumed the bags were manufactured from raw polypropylene granules. By applying the rules of interpretation for the Customs Tariff Act, the Authority concluded the goods fall under the category of sacks and bags of man-made textile materials. This classification is supported by the specific nature of the manufacturing process involving the conversion of fabric into finished bags.
Provisions relied on
- Section 100(1) of the West Bengal Goods and Services Tax Act, 2017
- Notification No. 1/2017-Central Tax (Rate) dated 28-06-2017
- Notification No. 1125-FT dated 28/06/2017 under the WBGST Act, 2017
- Customs Tariff Act, 1975
For the practitioner
This ruling provides **significant relief** to manufacturers of non-woven bags by confirming they are classified as textile products under HSN 6305 rather than plastic goods under HSN 3923. It clarifies that the classification depends on the starting material being fabric rather than raw granules. Practitioners can use this to argue for a **lower 5% tax rate** for similar manufacturing operations.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/2024-02/wb_aaar_02_2019_13.02.2019.pdf
Legibility of the scan, as read: high.
Prepared 13-10-2026.
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