CCO/TECH/MISC/49/202-TECH-O/o CC-CGST-ZONE-JAIPUR APPELLATE AUTHORITY FOR ADVANCE RULING, RAJASTHAN ,· .··

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ORDER NO. 01/2026-27 DATED - 02.. \ '2...o 'LG Before the AAAR comprising of:

1. Sh. Manish Kumar, Member (Central Tax)

2. Sh. KumarPal Gautam, Member (State Tax)

Name and address of the Mis Easy Flux Polymers Private Limited, appellant

704, Munglam Funsquare, Durga Nursery Road, I Udaipur (Rajasthan) 313001 l GS1N - 08AADCE5250C1Z1 GSTIN/ UID ofthe appellant· '

Section 97(2) ofCGST Act, 2017:-

Issue under appeal (a) classification ofgoods (b) applicability ofa notification

13.03.2026 Date ofpersonal hearing Bohra, Shri Ashok Director \ Present for the appellant Shri Sh. Rakesh KumarMehta, CA &zAyxIwRvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA I Appeal No. RAJ/AAAR/06/2025-26 against Details ofappeal , Advance Ruling Order No. RAJ/AAR/2025-26/15 l dated 17.12.2025 i (Proceedings under Section 101 ofthe Central GST Act, 2017 read with Section 101 ofthe Rajasthan GST Act, 2017. The provisions of Central GST Act. 2017 and the Rajasthan GST Act, 2017 arezypxawrviu-tmsraqpteornimalkjbihagr feindcgbaaZYfXeWwVUeTxScReQptPiOonNMs.LTKJhIeHrGefFoErDeC, BA unless a specific mention is made to such dissimilar provisions. a reference to the Central GST Act, 20l7 should also be read as a reference to corresponding provisions ofthe Rajasthan GST Act, 2017)

This order relates to an appeal filed under Section 100 of the Central Goods & Services Tax Act, 2017 (hereinafter referred to as 'the CGST Act, 2017)

read with Section 100 of the Rajasthan Goods & Services Tax Act, 2017 (hereinafter referred to as ·the RGST Act, 2017') on 09 January. 2026 by MIs Easy Flux Polymers Private Limited (hereinafter referred to as 'the appellant') against Order No, RAJ/AAR/2025-26/15 dated 17 December, 2025 passed by the AAR, Rajasthan. The appeal has been filed within the prescribed time of 30 days andjs within time.

BRIEF FACTS OF THE CASE The facts of the case are that the appellant holds GST registration No.

08AADCE5250C1Z1 and had filed an appeal stating that the appellant is engaged in Page 1 of7 I/4185447/202 manufacture and supply of compostable plastic bags, which are claimed to be eco-

friendly substitutes for conventional plastic bags.

2. As submitted by them, the appellant holds valid CPCB / CJPET / TOV Rheinland ce1tifications, confim1ing compostability and biodegradability as per ISO

17088 and EN 13432 standards.

3. The appellant submitted that vide Notification No. 09/2025--CTR dated 17 September, 2025 (effective from 22.09.2025), the Government inserted Serial No. 319 in Schedule- I, prescribing OST @ 5% for "Paper Sacks/Bags and Biodegradable Bags" under Chapters 39 & 48.

4. As the appellant was of the view that the term "boi-degradable bags" is not defined. they applied for an advance ruling beforezAyxAwRvu.tsRraqjpaosnthmalnk,jihagnfdedtchbeaZAYAXWRV. UTSRQPONMLKJIHGFEDCBA vide Order No. RAJ/AARJ2025-26/15 dated I7December 2025, gave its ruling as under-zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA "Q 1)zyCxlwasvsu{tfiscraqtipoonn/HmSlNkj:ihWgfheedthcebraZthYeXWApVpUlicTaSnRt'Qs PbOiodNeMgrLaKdaJbIlHeGbFagEsDCarBe classifiable under Chapter 39ziyfxwofvuptslarqsptiocn'cmolkmjiphogsfetadcbbleaZpYoXlyWmeVUr)TSorRQCPhOapNtMerLK4J8IHaGfFEDCBA ofpaper), and the appropriate HSNtherein.

Ans- The biodegradablelcornpostable bags manufactured by the applicant are classifiable under Chapter 39- "Plastics and articles thereof," Heading 3923, s4 heading 3923 29 90 (Othersacks and bags. ofplastics) as discussed in para 7.•.

Pura 7 is reproduced as under-

. "We find that the bags in question are made from polymer materials and are classifiable under Chapter 39 -