13/10/2026
π§΅ PLASTIC SUTLI = 18% GST!
Gujarat AAR Says: Itβs Plastic, Not Textile!
Can simply calling a product βtwineβ make it a textile product? Not necessarily!
The Gujarat AAR, in M/s Amit Vinodkumar Kanjiya (Akplast Packaging), examined plastic sutli made from PP/PE granules.
πΉ The applicant claimed HSN 56074900 under Chapter 56.
πΉ But the AAR held that the product remains essentially a plastic article, even after extrusion, stretching and twisting.
The dispute was essentially:
Plastic sutli made from PP/PE granules β should it be treated as textile twine under HSN 5607, or as an article of plastic under Chapter 39?
The applicant wanted HSN 56074900, which covers twine, cordage, ropes and cables of polyethylene or polypropylene, whereas the AAR ultimately classified the product under HSN 39269099.
The product was manufactured broadly through:
PP/PE granules β mixing with masterbatch β extrusion β quenching β slitting into tapes β stretching/orientation β twisting β winding
The applicant argued that after orientation and twisting, the product becomes twine, and therefore Heading 5607 should apply.
However, the AAR did not accept that reasoning.
The important reasoning is that Heading 5607 deals with textile twine, cordage, ropes and cables.
According to the AAR, merely converting PP/PE plastic granules into a twisted twine-like product does not make the resultant product a textile material.
In other words:
Twisting β automatically becoming a textile product.
The basic material remains plastic, and the manufacturing process does not convert it into a textile material for classification purposes.
π Final classification: HSN 39269099 β Other articles of plastics
π GST Rate: 18% (9% CGST + 9% SGST)
The key message is simple:
βTwisting plastic into twine doesnβt automatically make it a textile product.β
The ruling also highlights why product composition, manufacturing process and HSN classification rules matter more than the name commonly used for the product.
β οΈ This AAR is binding on the applicant and the concerned jurisdictional officer; it is not automatically binding on every taxpayer.
π A useful classification lesson for manufacturers and dealers of plastic sutli/twine.
An AAR ruling is generally binding on the applicant and the concerned jurisdictional officer, rather than automatically binding on every taxpayer throughout India. Therefore, it should be used as a strong classification reference, but one should examine the exact product, manufacturing process and jurisdiction before applying it to another taxpayer.
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