DEPARTMENT OF COMMERCIAL TAXES, KERALA
PROCEEDINGS OF THE AUTHORITY FOR CLARIFICATION
U/s.94 OF THE KERALA VALUE ADDED TAX ACT, 2003.
Members present are:
1. T.K. Ziavudeen.
Joint Commissioner (Law),
Office of the Commissioner of Commercial Taxes, Thiruvananthapuram.
2. Dr. A. Bijikumari Amma.
Joint Commissioner (A & I),
Office of the Commissioner of Commercial Taxes, Thiruvananthapuram.
3. N. Thulaseedharan Pillai.
Joint Commissioner (General),
Office of the Commissioner of Commercial Taxes, Thiruvananthapuram.
Sub :- KVAT Act, 2003 – Clarification U/s 94 – Rate of tax applicable for
disposable plastic plates, cups, tumblers, trays, lids, containers –
Orders issued.
Read :- Application dtd. 23/04/2013 from M/s. Kalyx Plasti-pack, Pappinisseri.
ORDER No.C3/12332/13/CT DATED 31/10/2016
1. M/s. Kalyx Plastipack has preferred an application U/s 94 of the Kerala Value
Added Tax Act, 2003, seeking clarification on the rate of tax of disposable plastic
plates, cups, tumblers, trays, lids, containers etc.
2. The applicant would contend that they are the manufacturer and dealer of
disposable plates, cups, tumblers, containers, trays, bowls etc made of plastics.
3. The applicant would submit that as per Finance Act 2013 'Disposable plates,
cups and leaves made of plastic' were included under Table 3A to clause (a) of
section 6(1) of the KVAT Act 2003 taxable at 20% and that they had no dispute with
regard to rate of tax of the aforesaid items made of plastic, as items are specific.
4. The applicant has therefore requested to clarify the following points.
a. Which items would be considered as Disposable.
Normally, the
Manufacturers of Food Products or any other products or restaurants or
hotels would consider the ‘Containers for the packing of goods’ of as
Disposable; however, the end user may or may not reuse the same for his
own use.
b. Explain the disposable plates. Normally, plate means a flat dish, typically
circular or square from which food is eaten or served. Plates do not have
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the ability for packing of foods. So, we feel that the trays, lids & containers
do not fall under this category.
c. Explain disposable cups.
Normally, cups means a small, bowl shaped
container for drinking from typically up to a size of 130 ml. Above 130 ml,
it is generally called as tumbler.
Tumblers above 250 ml are generally
used as packing material.
d. Explain disposable leaves.
e. Whether the increased rate would be applicable for disposable foam,
thermocol, XPS (Cross-linked Polystyrene), paper plates, cups & leaves,
which are manufactured out of plastics or are coated with plastics.
5. The authorised representative of the applicant was heard in the matter and
the contentions raised were examined.
6. The applicant has sought clarification on 5 points which are clearly stated in
the application. The first 4 points raised by the applicant are beyond the scope of
clarification u/s. 94 of the KVAT Act.
7. Now, coming to the 5th point, it is hereby clarified that the tax rate of
disposable foam, thermocol, and XPS (Cross-linked Polystyrene) was left unchanged
by the Kerala Finance Act, 2013.
The clarification sought as to the rate of tax
applicable for disposable paper cups, plates or leaves manufactured out of plastic is
not clarifiable. Either it should be made out of plastic or it should be made out of
paper.
But disposable paper plates, cups and leaves coated with plastic are not
covered under Sl. No. 3 A of the table in clause (a) of Sec. 6(1) of the KVAT Act.
The issues raised above are clarified accordingly.
T.K. Ziavudeen
Thulaseedharan Pillai
Joint Commissioner (Law)
Commissioner (General)
O/o CCT
Dr. A. Bijikumari Amma
Joint Commissioner (A&I)
O/o CCT
N.
Joint
O/o CCT
To
M/s. Kalyx Plastipack,
Swaraj Plywood Road,
Pappinisseri, Kannur – 670 561
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