GST Classification of Plastic Twine (Sutli) Under Gujarat Advance Ruling
The Gujarat Authority for Advance Ruling confirmed that plastic twine is classified as a plastic article, not a textile product.
- Ruling
- GUJ/GAAR/R/2026/31 dated 07/08/2026
- Dated
- 07 Aug 2026
- Authority
- 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 if plastic twine falls under HSN 5607 as textile twine.
- The Authority ruled it is an article of plastic under Chapter 39.
- Plastic twine is classified under HSN 3926, not as a textile material.
In short
The company asked the Gujarat Authority for Advance Ruling (GAAR) to confirm the correct HSN code and GST rate for plastic twine (sutli). They wanted to know if it should be treated as a textile product or a plastic product. The authority decided that because it is made from plastic granules, it must be taxed as plastic.
What has changed
How it worked before
Businesses were uncertain whether plastic twine should be classified as textile twine under HSN 5607 or as a plastic article under Chapter 39.
What has changed
The authority confirmed that plastic twine is an article of plastic under HSN 3926. This means manufacturers must apply the GST rate associated with plastic goods rather than the potentially different rates for textiles.
Who this affects
Manufacturers and traders of plastic twine or similar plastic-based packing materials.
An example
A manufacturer produces plastic rope using polypropylene granules. They are unsure if they should use the textile HSN code to benefit from a lower tax rate. Based on this ruling, they should classify their product under Chapter 39 as a plastic article. They should update their invoices to reflect the correct HSN 3926 to avoid future tax disputes.
What you should do
This ruling only applies to the specific business that asked the question. If you sell similar products, do not assume this classification automatically applies to your business. Consult your tax advisor to ensure your HSN classification matches your specific manufacturing process.
If you do nothing
If you classify your goods incorrectly, a tax officer may issue a notice for tax evasion or incorrect reporting. You could be forced to pay the difference in tax, along with interest and penalties. Relying on a ruling that does not apply to you is not a valid legal defense.
The terms explained
- HSN
- Harmonized System of Nomenclature is a code used to classify goods for tax purposes.
- Chapter 39
- A section of the tax tariff specifically covering plastics and articles made of plastic.
- Chapter 56
- A section of the tax tariff covering textile products like twine, cordage, and ropes.
The ruling in detail
Authority for Advance Ruling
M/s. Amit Vinodkumar Kanjiya (Trade name: Akplast Packaging)
GUJ/GAAR/R/2026/31 dated 07/08/2026 · Gujarat
Questions before the authority
- Correct HSN for plastic twine (sutli).
- Correct GST rate to charge on plastic twine(sutli).
Facts
The applicant manufactures plastic twine (sutli) using an extrusion process involving polypropylene or polyethylene granules. The product is used for agricultural and industrial packing and was previously classified by the applicant under HSN 39239090. The applicant sought a ruling to confirm if the product should instead be classified under HSN 5607 as textile twine.
Ruling
| Question | What the authority ruled |
|---|---|
| Correct HSN for plastic twine (sutli) | Sub-heading 39269099 of the First Schedule to the Customs Tariff Act, 1975 None |
| Correct GST rate to charge on plastic twine (sutli) | 18% (9% CGST + 9% SGST) As per Entry No. 127 of Schedule II of Notification No. 09/2025-Central Tax (Rate) |
The Authority ruled that the product is not a textile material and is correctly classifiable under Chapter 39 of the Customs Tariff Act. Consequently, it falls under the residual entry for other articles of plastics. The applicable GST rate is determined based on this classification.
Reasoning
The Authority determined that the product is manufactured from plastic granules and does not qualify as a textile material under Section XI. Relying on judicial precedents, it held that plastic strips or twine made from plastic raw materials are articles of plastic, not textiles. Therefore, the product is excluded from Chapter 56 and falls under the residual heading 3926. It specifically cited **Entry No. 127 of Schedule II** of Notification No. 09/2025-Central Tax (Rate) to fix the GST liability.
Provisions relied on
- Section 97(2) of CGST/GGST Act, 2017
- Chapter 39 of the Customs Tariff Act, 1975
- Chapter 56 of the Customs Tariff Act, 1975
- Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025
For the practitioner
This ruling clarifies that plastic twine manufactured from polymer granules is **classified as an article of plastic** under HSN 3926 rather than as textile twine under HSN 5607. It serves as a warning for manufacturers attempting to classify plastic-based products as textiles to avail lower tax rates. Practitioners should note that the Authority relies heavily on the **exclusion of plastic materials** from the textile chapters.
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/AAR/7-amit_vinodkumar_kanjiya_0001_compressed.pdf
Legibility of the scan, as read: high.
Prepared 11-10-2026.
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