Geo Membrane Classification Under Chapter 59 – Gujarat High Court VerdictBy Admin | October 18, 2024 | 4 Min Read
Categories: Important Pronouncements
The Hon’ble Gujarat High Court in M/s Ananta Synthetic Innovations v. State of Gujarat [Special Civil Application No. 504 of 2023, dated July 11, 2024] ruled that the Geo Membrane manufactured by the Assessee is classifiable under Chapter 59 of the GST Tariff, not Chapter 39. The court held that the Assessee is liable to pay 12% GST from November 15, 2017, onwards, instead of 18%.
Case Overview
M/s Ananta Synthetic Innovations, a manufacturer of Geo Membrane, also known as ‘Geo Grid’ or ‘Geo Fabrics’, had disputed the GST rate applicable to their product. The Assessee argued that the product should fall under HSN Code 59111000 as a textile fabric, subject to 12% GST. However, the Department classified it under HSN Code 39269090 as a plastic product, attracting 18% GST.
Court Ruling
The Gujarat High Court relied on several judgments, including M/s CTM Technical Textiles Ltd. v. Union of India, determining that Geo Membrane is a woven fabric made using polyester yarns and should be classified as a textile under Chapter 59, attracting 12% GST. This decision overturned the Gujarat AAR’s earlier ruling and allowed the Assessee to claim a refund for the excess GST paid.
Key Points:
Geo Membrane falls under HSN Code 59111000.
GST rate reduced from 18% to 12%.
Biofloc Technology in aquaculture ponds benefits from using Geo Membrane, offering higher production density and ecological sustainability.
Our Comments:
The demand for HDPE Geomembranes has increased significantly, especially in aquaculture and rainwater harvesting applications. HDPE Geomembranes used in Biofloc Technology provide a sustainable solution by maintaining optimal water conditions and promoting disease prevention. This verdict highlights the importance of correctly classifying technical textile products, aligning with recent judicial interpretations.
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