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‘Tips & Balls’ used in refills of Ball Point Pens classifiable under Heading 9608 99 90; GST @ 12% applies

March 15, 2019[2019] 103 taxmann.com 224 (AAR - WEST BENGAL)
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GST : "Tips and Balls" of ball point pens are to be classified under GST Tariff Heading 9608 99 90 and included under Sl No. 453 of Schedule III of Notification No. 01/2017 - Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1125-FT dated 28/06/2017)and taxable at rate of 9 percent CGST and 9 percent SGST

• The applicant was in the business of manufacturing and supplying of ball point pens, for which pen tips and balls to be used inside the tips were required in order to make the same tips working. It was also trading and supplying ball point pen tips and refills to various dealers.

• The applicant sought a ruling on question that whether tips and ball, both being pen parts under HSN Chapter Head 9608, used in manufacturing process of ball point pens, were taxable at the rate of 12 percent. And if the tips and balls used in the manufacturing of ball point pens were not taxable at the rate of 12 percent under HSN 9608, then at what rate would they be taxable and under which HSN.

• In the rate notification ball point pens, classified under HSN 9608, are included under Sl No. 232 of Schedule II under the description: "pens other than fountain pens, stylograph pens". The same notification also mentions "fountain pens, stylograph pens" under Sl No. 447 of schedule III. However, parts of pen, including "tips and balls of pens", classifiable under HSN 9608 are not exempted or specifically included under entries of any other schedules. They are, therefore, to be included under Sl No. 453 of Schedule III and taxable at rate of 9 percent CGST and 9 percent SGST.

• Thus, "Tips and Balls" of ball point pens are to be classified under GST Tariff Heading 9608 99 90 and included under Sl No. 453 of Schedule III of Notification No. 01/2017–Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1125-FT dated 28/06/2017).

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