Facts –

• The applicant, M/s Oswal Poly Rubbers, manufacture PVC cushion foot mats and intend to procure rolls of PVC material from vendors. These rolls will be cut to fit in vehicle floors and then packed and dispatched to customers. 
• The applicant has been of the view that the PVC mats for automobiles are covered under Chapter Heading 8708 as parts and accessories of motor vehicles. However, Notifications No. 1/2017-Central Tax (Rate) and No. 1/2017-State Tax (Rate) specify the GST rate on various products, including floor coverings of plastic under Heading 39.18, attracting 18% GST rate, and parts and accessories of motor vehicles under 87089900, attracting 28% GST rate.

Issue –

• What is the HSN code and GST rate on mats, which are made from 100% PVC with no textile material?
• Whether cutting the PVC Cushion mats to size as per the requirement of the buyers, and packing them would result in a different product for classification and tax purposes?

Order –

• The authorities observed that the PVC cushion mats for motor vehicles, without any textile material and made only of PVC, fall under Chapter 39 of the GST tariff rates.
• The applicable rate of tax for these goods is 18% in accordance with Notification No. 1/2017-Central Tax(Rate) dated 28.06.2017.
• Cutting the PVC cushion mats to size and packing them as per the buyer's requirement does not change the classification of the product for tax purposes.