Classification of goods— The Applicant is engaged in the business of building materials and has its manufacturing operations in the state of Rajasthan and Andhra Pradesh, with major manufacturing activities based in the state of Rajasthan.

The Applicant seeks Advance Ruling on the following:

a) Whether the new variant of gypsum board intended to be manufactured by the Applicant as per the specifications mentioned in Exhibit-2 could be classified as Glass-fibre Reinforced Gypsum Board (GRG Board) and charged to GST at the rate of 12%.

b) Whether manufacture as per BIS standard IS-2095 is necessary' for all GRG board to be covered under the entry Serial No. 92 of Schedule II of Notification No. 1/ 2017- Central Tax (Rate) dated 28 June 2011?

The applicant has contended that they are contemplating production of a new variant of gypsum board, whether the same could be classified as GRG board classifiable under tariff item 6809 19 00 but attract lower rate of GST under Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017.

The main raw material of Gypsum Plaster board is "Gypsum" (more than 90%), which is mainly procured from mines and other raw material is paper and additives, whereas, the Glass Fibre Reinforced Gypsum Board is made-up of Phosphogypsum (more than 90%), which is a by product of phosphoric acid plant. Other raw material i.e. Glass fibre and additives is also used in the manufacturing of GRG Board.

Held that— the new variant of gypsum board intended to be manufactured by the Applicant cannot be classified as Glass-fibre Reinforced Gypsum Board (GRG Board) and charged to GST at the rate of 12%.