Order date – 28 March 2023

Applicant – Hosur Coir Foams Private Limited

Facts –

• The applicant, M/s HOSUR COIR FOAMS PRIVATE LIMITED, is a manufacturer and supplier of rubberized coir mattresses and bare blocks.
• The applicant has already supplied the said goods and continues to supply them through M/s Coir Industrial Co-operative Society Limited under the tender process for use of hostel students of government schools run by the Department of Social Welfare of the Government of Karnataka.
• The applicant has issued two invoices with GST @ 18% to a Karnataka State undertaking intended for student hostels run by Karnataka State Social Welfare Department, and no exemption was claimed on the supplies already made against the tender.
• The applicant, has sought an Advance Ruling on the applicability of IGST rate on the supply of mattresses to hostel students of government schools, educational institutions of the Government of Karnataka, Department of Social Welfare, and any other educational institution's hostel.

Issue –

• What will be the applicable rate of GST applicable for the supply of Mattresses intended for hostel students of educational institutions run by Government of Karnataka and other educational institutions through M/s Coir Industrial Co-operative Society Limited under Tender process.

Order –

• The authorities observed that the applicant has supplied mattresses classified under HSN 940429 @ IGST 18% on “Bill to” “Ship to” basis to M/s Coir Industrial Co-operative Society Limited.
• It was observed that Notification No.02/2017 CT (Rate) dated 28.06.2017, which provides exemption for inter-state supply of goods, and Notification No.1/2017 1.7 (Rate) dated 28.06.2017, which provides the effective rate of tax for inter-state supply of goods, do not provide any exemption or concessional rate of IGST based on the end use of mattresses.
• Therefore the applicant’s supply of mattresses is subject to IGST at the rate of 18% under serial number 438 of Schedule III of Notification No.01 /2017 LT (Rate) dated 28.06.2017, as amended by Notification No.43/2017 LT (Rate) dated 14.11.2017. Furthermore, the applicant's supply of mattresses classified under HSN 940429 to any hostel of educational institutions in another state is also liable to IGST at the same rate and under the same provisions.

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