Calcutta High Court Upholds GST Classification of Polypropylene Leno Bags as Plastic Products

The article discusses the GST classification of Polypropylene (PP) Leno Bags and whether they should be treated as textile products under HSN 6305 or plastic products under HSN 3923.

It highlights various Advance Ruling decisions and CBIC clarifications stating that Polypropylene woven and non-woven bags, including PP Leno Bags, are generally classifiable as plastic bags under HSN 3923 and attract 18% GST.

The article explains that PP Leno Bags are manufactured using polypropylene strips/tapes and are commonly used for packing agricultural produce such as potatoes, onions, and vegetables.

It also mentions that some rulings earlier classified certain PP Leno Bags under HSN 63053300 when made from woven polypropylene fabric using strips of width not exceeding 5 mm and without lamination or coating. However, appellate authorities and CBIC clarifications later supported classification under Chapter 39 as plastic products.

Source : https://www.jurishour.in/gst/gst-classification-polypropylene-leno-bags-plastic-products/