AAAR : Upholds classification of cotton carry/shopping bags under HSN 4202

Tamil Nadu AAAR upholds AAR order which held that cotton carry/shopping bags are classifiable under CTH 4202 2220, taxable at 18% GST (CGST plus SGST) as per Sl. No. 126 and 127 of Schedule III of Notification No. 01/2017- Central Tax (Rate) upto November 14, 2017 and 12% thereafter; Notes that, bags are mainly supplied to show-rooms, textiles shops, silk emporiums, jewellery shops, etc. and are of a kind used for the packing of goods commonly known as re-usable shopping bags...