Natural Fibre Composite Board bonded using PVC Resin attracts 12% GST: AAR

The Authority for Advance Rulings (AAR) clarified that natural fibre composite boards bonded with PVC resin would attract 12% GST. The ruling was sought to resolve ambiguities in the classification of these materials under the GST structure. By establishing a specific tax rate for such composite boards, the AAR helps streamline the tax compliance process for manufacturers and suppliers of these materials. This ruling will likely impact businesses in the construction and materials industries, ensuring consistent tax rates are applied across similar products, thereby reducing potential disputes with tax authorities.