2026-VIL-197-AAR
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SGST Advance Ruling Authority

GST - Classification of Rice Husk Board - Heading 4410 and Heading 4411 of the Customs Tariff - Applicant manufactured a board by mixing fibre obtained from rice husk with PVC resin as binding agent, calcium carbonate and additives. The mixture was processed through extrusion, sizing and cutting - Applicant contended that the product is a Natural Fibre Composite Board and not a particle board - Whether the board is classifiable as particle board under Heading 4410 or as fibre board under Heading 4411 - HELD - The Applicant framed a different question and named the product differently in its fresh submission. The manufacturing process, the submissions and the sales invoices show that the product is Rice Husk Board. The reference to Natural Fibre Composite Board is therefore considered as a reference to Rice Husk Board - The test reports from an accredited laboratory, read with the laboratory's clarification that the term "Rice Husk Ash" denotes rice husk fibre, establish the constituents of the product. Rice husk is a ligneous material. Heading 4410 covers particle board, made from particles of wood or ligneous material, and the HSN notes state that the organic binder in particle board generally does not exceed a prescribed share of the weight of the board - The PVC binder in the Applicant's product is much higher than that share. Fibres are first extracted from rice husk before being mixed with PVC resin and additives. Only if rice husk were directly added with binders without extracting the fibres would the product be a particle board. Heading 4411 covers fibre board of wood or other ligneous materials, whether or not bonded with resins or other organic substances - The manufacturing process and the properties of the product match the HSN notes to Heading 4411. Indian Standard specifications are not mandatory for determining classification, which is governed by the General Rules of Interpretation, Section Notes and the HSN, based on composition, material and essential character. The product is a fibre board classifiable under Heading 4411 – Ordered accordingly - Rate of GST on Rice Husk Board - Serial No. 92 of Schedule II to Notification No. 01/2017-Central Tax (Rate) and Serial No. 292 of Schedule I to Notification No. 09/2025-Central Tax (Rate) - Applicant sought a ruling on the applicability of the rate under the earlier notification and the benefit of the reduced rate effective from 22.09.2025 - Whether Rice Husk Board is covered by the said entries and the rate of tax applicable for the period before and after 22.09.2025 - HELD - Rice Husk Board is specifically mentioned at item (c) of Serial No. 92 of Schedule II of Notification No. 01/2017-Central Tax (Rate) for goods falling under Chapter 44 or any Chapter. Notification No. 01/2017 was superseded by Notification No. 09/2025 with effect from 22.09.2025. Rice Husk Board is mentioned at item (c) of Serial No. 292 of Schedule I of Notification No. 09/2025 - The board attracts GST at the rate of 12% for the period prior to 22.09.2025. It attracts GST at the rate of 5% with effect from 22.09.2025.
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