Telangana GST Advance Ruling on Coir Sheet Tax Rates
- Ruling
- TSAAR Order No. 8/2018, dated 20-07-2018
- 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.
In short
Victory Comfort Products asked the Authority for Advance Ruling (AAR) in Telangana to decide if their rubberised coir sheets should be taxed at 5% or 12% under the Goods and Services Tax (GST) framework. The authority could not provide a decision because the company did not submit enough information to classify the product correctly.
What has changed
How it worked before
Businesses often assumed that submitting a request to the AAR would automatically lead to a clear tax classification for their products. Many owners believed that the tax authorities would investigate the product details independently if the initial application was incomplete.
What has changed
The authority decided that they cannot rule on a tax rate if the applicant fails to provide essential documents like product catalogues. In practice, this means that if you do not provide clear technical specifications and usage details, your application will be dismissed without a decision on the tax rate.
Who this affects
This situation applies to any manufacturer or trader of coir products, rubberised sheets, or industrial materials who is unsure about their GST classification and tax rate.
What you should do
If you are seeking clarity on your tax rate, ensure you attach detailed product catalogues, technical specifications, and clear descriptions of how your product is used. Remember that an advance ruling is only binding on the business that asked and its specific tax officer, so you cannot automatically apply this outcome to your own business operations.
The ruling in detail
Authority for Advance Ruling
M/s. Victory Comfort Products, Mahbubnagar
TSAAR Order No. 8/2018, dated 20-07-2018 · Telangana
Questions before the authority
- Whether the product 'Coir Sheets / Rubberised Coir sheets or Blocks' should be taxed at 5% or 12%.
Facts
The applicant manufactures coir sheets composed of 75% coir fibre, 20% natural latex, and 5% chemicals. The manufacturing process involves uncurling fibre, forming sheets, spraying with latex, drying, and vulcanizing. The end uses for these products include carpet underlaying, packaging, and mattress layers.
Ruling
| Question | What the authority ruled |
|---|---|
| Tax rate for Coir Sheets / Rubberised Coir sheets or Blocks | Not decided Application disposed of due to lack of sufficient information |
The authority declined to provide an advance ruling on the tax rate. It concluded that the applicant failed to provide sufficient information, specifically a product catalogue, to determine the correct classification and applicable tax rate.
Reasoning
The authority noted that coir products (except mattresses) fall under Schedule II, while mattress supports and certain other items fall under Schedule III of Notification No. 1/2017 Central Tax (Rate). Because the applicant did not provide a product catalogue despite requests, the authority could not determine if the product was intended for use in mattresses or other applications. Consequently, the issue could not be decided for want of information. The ruling was disposed of without a substantive decision on the tax rate.
Provisions relied on
- Section 97(1) of TGST Act, 2017
- Section 100(1) of CGST/TGST Act, 2017
- Rule 103 of CGST/TGST Rules, 2017
- Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017
For the practitioner
This order serves as a **procedural dismissal** rather than a substantive ruling on tax classification. It highlights that the Authority for Advance Ruling will not decide cases where the applicant fails to provide **sufficient evidence or documentation** to support their claims. Practitioners should ensure all relevant product catalogues and technical specifications are submitted to avoid a similar outcome.
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/tsaar_08.2018_20.07.18.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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