The Goods and Service Tax (GST) is to be charged at the rate of 18% on the Plastic Mechanical Liquid Dispenser according to the ruling given by the Authority of Advance Ruling (AAR).

The case got presented to the two-member bench of Sanjay Saxena and Mohit Agarwal, the case was about the applicant who was engaged in importing “Plastic Mechanical Liquid Dispensers” from China and was selling them in the local market since 2011. These dispensers are used as the caps of bottles. They are used for dispensing liquid either through direct discharge or spray type discharge or foam type of discharge.

Earlier till June 30, 2017, the product was imported under HS Code 3923 (Caps and closure) but after the implementation of GST the product was imported under HSN 3926 (Other articles of Plastics) with a new rate of 28% said the applicant.

It was a state of confusion for the applicant as they were not certain about the HSN code as his competitors were supplying the same product under HSN 8424 and 9616, so to remove this state of confusion the applicant applied to Authority of Advance Ruling (AAR) for the classification of its product.

 The two-member bench of Sanjay Saxena and Mohit Agarwal of the Authority of Advance Ruling (AAR) heard the case and gave its ruling that the imported Plastic Items stated because Plastic Mechanical Liquid Dispenser shall be classified, under Chapter sub-heading 3926.90- Others, as “articles, not elsewhere specified or included, of plastics as defined in Note 1 to the Chapter or other materials of heading 39.01 to 39.14”. 

So from now on Plastic Mechanical Liquid Dispenser will be charged to GST at the rate of 28% till November 14, 2017, and 18% GST from effect since November 15, 2017.

With Warm Regards,

CL Bureau.

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