The West Bengal Authority of Advance Ruling (AAR) has held that Supply of Baby Carrier with hip seat as manufactured by the applicant would attract 5% GST when sale value does not exceed Rs. 1,000 per piece and 12% GST when sale value exceeds Rs. 1,000 per piece.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that as per the explanatory notes with respect to Chapter 63, which contains an illustrative list of the items listed therein covered under the Sub-Heading No.6307 but could not find any specific mention of ‘Baby Carriage with hip seat’ in the saidlist. However, from a bare reading of the Chapter Heading 6307, it can be derived that “other made up articles, including dress pattern” is wide enough to cover the articles like Baby carriage with hip seat. The Baby Carriage with hip seat is subject to relevant conditions, would be covered under the Sub-Heading 63079099 under the Heading 6307.
Table of Contents
Background
The applicant is engaged in the business of manufacturing and trading of “Baby Carriers with Hip Seat”. The applicant further provides a product description of baby carriers with hip seats, featuring an inbuilt mini diaper bag and convertible sling carry bag with five storage pockets, designed to carry infants and toddlers. The product is ergonomically designed to provide support in carrying the baby up to 18 Kgs in weight and is typically made from fabric materials combined with other supportive structures.
The applicant manufactures Baby Carriers with hip seat belts as described above and currently charging 18% GST under HSN Code 8715.
However, the applicant has been informed in recent times by a few e-commerce operators that Chapter Heading 87 specifically relates to “Vehicles other than railway or tramway rolling-stock and parts and accessories thereof” and therefore the applicant is wrongly classifying the goods under HSN 8715.
Since, the product manufactured by the applicant is without wheels and it is not a vehicle therefore, the applicant understood the e-commerce operators point and started identifying the correct classification for its product.
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Issue Raised
The applicant sought the advance ruling on the issue whether the Products “Baby Carriers with Hip seat” covered by HSN code 63079099 (Other made-up articles, including dress patterns – Other). If it is not so classified in HSN 63079099 then what would be the correct classification of “baby carriers with hip seat” under the HSN code for GST purposes.
Conclusion
The AAR held that Supply of Baby Carrier with hip seat as manufactured by the applicant shall be covered under HSN 6307 90.
What is the GST Rate on Baby Carrier With Hip Seat worth less than Rs. 1,000/-?
5% GST is payable on Baby Carrier With Hip Seat when sale value does not exceed Rs. 1,000 per piece.
What is the GST Rate on Baby Carrier With Hip Seat worth more than Rs. 1,000/-?
18% GST is payable on Baby Carrier With Hip Seat when sale value exceed Rs. 1,000 per piece.
Applicant’s Name: Butt Baby Enterprise Private Limited
Date: 10/09/2024
