GST Classification of Polypropylene Leno Bags for Agricultural Packaging
The West Bengal Authority for Advance Ruling classified Polypropylene Leno Bags under Tariff Sub Heading 63053300 for GST purposes.
- Ruling
- 16/WBAAR/2018-19 dated 18.09.2018
- 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 for the correct GST classification of Polypropylene Leno Bags.
- The authority ruled these bags fall under Tariff Sub Heading 63053300.
- This applies only if strips are under 5mm and lack plastic coatings.
In short
The company asked the West Bengal Authority for Advance Ruling (AAR) to clarify how to classify Polypropylene Leno Bags under the Goods and Services Tax (GST) system. These bags are commonly used to pack agricultural produce like potatoes and onions. The core issue was whether these bags should be treated as plastic products or as textile-based packaging.
What has changed
How it worked before
Businesses were uncertain whether these bags should be classified under Chapter 39 (plastics) or Chapter 63 (textile articles), leading to potential confusion regarding the applicable GST rate.
What has changed
The authority decided that because the bags use strips no wider than 5mm and are not coated or laminated with plastic, they belong in Chapter 63. This provides a clear classification path for manufacturers, ensuring they do not incorrectly categorize their products under the plastic goods chapter.
Who this affects
Manufacturers and suppliers of Polypropylene Leno Bags used for agricultural packaging.
An example
A manufacturer in another state produces similar Polypropylene Leno Bags for onion farmers. They are unsure if they should classify them under Chapter 39 or 63. Based on this ruling, if their bags use strips under 5mm and have no plastic coating, they can reasonably argue for classification under 63053300. They should document their technical specifications to support this position if questioned by their local tax office.
What you should do
If you manufacture similar bags, you may use this ruling as a guide for your own classification. However, remember that an Advance Ruling is only legally binding on the business that requested it and its specific tax officer. You should consult with your tax advisor to confirm if your specific product specifications match the criteria set out in this ruling.
If you do nothing
If you assume this ruling automatically applies to your business and classify your goods incorrectly, you risk a dispute with your local tax officer. If the officer disagrees with your classification, you may face demands for tax differences, interest, and potential penalties. Always seek professional advice tailored to your specific manufacturing process.
The terms explained
- Tariff Sub Heading
- A specific code used in the tax system to categorize goods for the purpose of determining the correct tax rate.
- Impregnated
- A process where a material is soaked or filled with another substance, such as plastic, to change its properties.
- Polypropylene
- A type of plastic polymer commonly used to create durable, woven fabrics for industrial and agricultural packaging.
The ruling in detail
Authority for Advance Ruling
SMVD Polypack Pvt. Ltd
16/WBAAR/2018-19 dated 18.09.2018 · West Bengal
Questions before the authority
- Classification of Polypropylene Leno Bags under the CGST/WBGST Acts, 2017.
Facts
The applicant manufactures Polypropylene Leno Bags primarily used for packing agricultural produce like potatoes and onions. The bags are produced by extruding a mixture of polypropylene, calcium, and color master batch into strips, which are then woven into fabric and stitched. The applicant sought a ruling on the correct classification of these specific bags.
Ruling
| Question | What the authority ruled |
|---|---|
| Polypropylene Leno Bags | 63053300 Must use strips <= 5mm and have no plastic coating or lamination |
The authority ruled that the Leno Bags are to be classified under Tariff Sub Heading 63053300. This classification applies provided the bags are made from woven polypropylene fabric using strips not exceeding 5 mm in width and are not impregnated, coated, covered, or laminated with plastics.
Reasoning
The classification turned on the interpretation of Chapter 39 and Section XI notes of the Tariff Act. The authority noted that Section XI excludes monofilaments exceeding 1 mm or strips exceeding 5 mm of plastics, as well as fabrics impregnated or coated with plastics. Since the applicant's bags use strips not exceeding 5 mm and lack such coatings, they fall under Chapter 63 rather than Chapter 39. The authority also considered IS 16187:2014, which specifies that such bags should have a width of 2.0 to 2.5 mm.
Provisions relied on
- Section 97(2)(a) of the GST Act
- Note 2(p) of Chapter 39 of the GST Tariff
- Note 1(g) of Section XI of the Tariff Act
- Note 1(h) of Section XI of the Tariff Act
- IS 16187:2014
- Section 103 of the GST Act
- Section 104(1) of the GST Act
For the practitioner
This ruling confirms that **Polypropylene Leno Bags** are classifiable under **Tariff Sub Heading 63053300** provided they meet specific technical criteria regarding strip width and the absence of plastic coatings. It provides a clear precedent for manufacturers of similar agricultural packaging to avoid classification under Chapter 39. It does not apply to bags that are impregnated, coated, or laminated with plastics, which would likely fall under a different classification.
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/wb_16_2018-19_dt_18.09.18_smvdpl.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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