Gujarat AAR Rules PVC Raincoats Classified as Plastic Articles, Subject to 18% GST

The Gujarat Authority for Advance Ruling (AAR) has held that PVC raincoats should be classified as plastic articles and not as textile apparel for GST purposes.

The ruling came on an application filed by a manufacturer seeking clarity on whether such raincoats fall under the 5% GST slab applicable to apparel or the 18% rate applicable to plastic products.

The AAR said the essential character of PVC raincoats is derived from their plastic composition, and therefore they cannot be treated as textile garments.

As a result, they attract 18% GST under the relevant tariff entry.