Chapter 40 - Rubber and articles thereof

Notes

Except where the context otherwise requires, throughout this Schedule the expression "rubber" means the NOTES: following products, whether or not vulcanised or hard: natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, synthetic rubber. factice derived from oils, and such substances reclaimed.
This Chapter does not cover:
1. goods of Section X1 (textiles and textile articles):
2. footwear or parts thereof of Chapter 64;
3. headgear or parts thereof (including bathing caps) of Chapter 65;
4. mechanical or electrical appliances or parts thereof of Section XVI (including electrical goods of all kinds), of hard rubber;
5. articles of Chapter 90,92,94 or 96; or
6. articles of Chapter 95 (other than sports gloves, mittens and mitts and articles of headings 401110 4013).
In headings 4001 to 4003 and 4005, the expression "primary forms" applies only to the following forms: (a) liquids and pastes (including latex, whether or not pre-vulcanised, and other dispersions and solutions); (b) blocks of irregular shape. lumps, bales, powders, granules, crumbs and similar bulk forms.
In Note 1 to this Chapter and in heading 4002, the expression "synthetic rubber" applies to:
1. unsaturated synthetic substances which can be irreversibly transformed by vulcanisation with sulphur into non-thermoplastic substances which, at a temperature between 18°C and 29°C, will not break on being extended to three times their original length and will return, after being extended to twice their original length, within a period of five minutes, to a length not greater than one and a half times their original length. For the purposes of this test, substances necessary for the cross-linking, such as vulcanising activators or accelerators, may be added: the presence of substances as provided for by Note 5(B)(ii) and (iii) is also permitted. However, the presence of any substances not necessary for the cross-linking, such as extenders, plasticisers and fillers, is not permitted;
2. thioplasts (TM); and
3. natural rubber modified by grafting or mixing with plastics, depolymerised natural rubber, mixtures of unsaturated synthetic substances with saturated synthetic high polymers provided that all the above-mentioned products comply with the requirements concerning vulcanisation, elongation and recovery in (a) above.
(A) Headings 4001 and 4002 do not apply to any rubber or mixture of rubbers which has been compounded. before or after coagulation, with:
1. vulcanising agents, accelerators, retarders or activators (other than those added for the preparation of pre-vulcanised rubber latex);
2. pigments or other colouring matter, other than those added solely for the purpose of identification;
3. plasticisers or extenders (except mineral oil in the case of oil-extended rubber), fillers, reinforcing agents, organic solvents or any other substances, except those permitted under (b);
(B) the presence of the following substances in any rubber or mixture of rubbers shall not affect its classification in heading 4001 or 4002, as the case may be, provided that such rubber or mixture of rubbers retains its essential character as a raw material:
1. emulsifiers or anti-tack agents;
2. small amounts of breakdown products of emulsifiers;
3. very small amounts of the following: heat-sensitive agents (generally positive rubberrthelarmotexeseon,sanititvie_orlbanbetsr anti-oxidants, cationic surface-active agents (generally for obtaining electro- coagulants, crumbling agents, freeze-resisting agents, peptisers, preservatives, vulcanised, viscosity-control agents, or similar special-purpose additives.
For the purposes of heading 4004, the expression "waste, parings and scrap" means rubber waste, parings and scrap from the manufacture or working of rubber and rubber goods definitely not usable as such because of cutting-up, wear Or other reasons.
Thread wholly of vulcanized rubber, of which any cross-sectional dimension exceeds 5 mm., is to be classified as strip. rods or profile shapes, of heading 4008.
Heading 4010 includes conveyor or transmission belts or belting of textile fabric impregnated, coated, covered or laminated with rubber or made from textile yarn or cord impregnated, coated, covered or sheathed with rubber.
In headings 4001, 4002, 4003, 4005 and 4008, the expressions "plates", "sheets" and "strip" apply only to plates, sheets and strip and to blocks of regular geometric shape, uncut or simply cut to rectangular (including square) shape, whether or not having the character of articles and whether or not printed or otherwise surface-worked, but not otherwise cut to shape or further worked.
In heading 4008, the expressions "rods" and "profile shapes" apply only to such products, whether or not cut to length or surface-worked but not otherwise worked.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
4001	Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip	5%	I	188
4002	Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip; mixtures of any product of heading 4001 with any product of this heading, in primary forms or in plates, sheets or strip; such as Latex, styrene butadiene rubber, butadiene rubber (BR), Isobutene-isoprene (butyl) rubber (IIR), Ethylene-propylene-Nonconjugated diene rubber (EPDM)	18%	III	112
4003	Reclaimed rubber in primary forms or in plates. sheets or strip	18%	III	113
4004	Waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom lig	18%	III	114<sup>1</sup>
4005	Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip	18%	III	115
4006	Other forms (for example, rods, tubes and profile shapes) and articles (for example, discs and rings), of unvulcanised rubber	18%	III	116
4007	Latex rubber thread	5%	I	83
4008	Plates, sheets, strip, rods and profile shapes, of vulcanised rubber other than hard rubber	18%	III	118
4009	Tubes, pipes and hoses, of vulcanised rubber other than hard rubber, with or without their fittings (for example, joints, elbows, flanges)	28%	IV	28<sup>*</sup>
4010	Conveyor or transmission belts or belting, of vulcanised rubber	18%	III	120
4011	Pneumatic tyres or inner tubes, of rubber, of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws	5%	I	190
4012	Retreaded or used tyres and flaps	18%	IV	47<sup>3</sup>
3306	Pneumatic tyres or inner tubes, of rubber, of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws	5%	I	190
4014	Nipples of feeding bottles	18%	III	84
4015	Surgical rubber gloves or medical examination rubber gloves	18%	III	85
4016	Toy balloons made of natural rubber latex	5%	I	259
4017	Waste or scrap of hard rubber	5%	I	191A<sup>7</sup>
4026	Rubber bands	5%	I	85A<sup>2</sup>
9503	Toy balloons made of natural rubber latex	5%	I	259A<sup>1</sup>
4004	Powders and granules obtained from waste, parings and scrap of rubber (other than hard rubber)	18%	III	114<sup>1</sup>
4004	Waste, parings or scrap of rubber (other than hard rubber)	5%	I	188A<sup>1</sup>
4007	Vulcanised rubber thread and cord, other than latex rubber thread	18%	III	117
4011	Rear Tractor tyres and rear tractor tyre tubes	5%	I	121
4011	New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyres]	28%	IV	46<sup>1</sup>
4011	New pneumatic tyres, of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws;, rear tractor tyres; and of a kind used on aircraft]	28%	IV	46<sup>1</sup>
4012	Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber	18%	III	121A<sup>4</sup>
4013	Inner tubes of rubber [other than of a kind used on/in bicycles, cycle rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyre tubes]	28%	IV	48<sup>5</sup>
4013	Inner tubes of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and 'Rear Tractor tyre tubes]	18%	III	121A<sup>6</sup>
4013	Inner tubes of rubber [other than of a kind used on/in bicycles, cycle-rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyre tubes]	18%	III	121B<sup>7</sup>
4014	Hygienic or pharmaceutical articles (including teats), of vulcanised rubber other than hard rubber, with or without fittings of hard rubber; such as Hot water bottles, Ice bags [other than Sheath contraceptives, Rubber contraceptives, male (condoms), Rubber contraceptives, female (diaphragms), such as cervical caps]	18%	III	122
4015	Articles of apparel and clothing accessories (including gloves, mittens and mitts), for all purposes, of vulcanised rubber other than hard rubber [other than Surgical gloves]	18%	III	123
4016	Toy balloons made of natural rubber latex	5%	I	259A<sup>1</sup>
4016	Erasers	0%	Nil	191
4016	Rice rubber rolls for paddy de:husking machine	18%	III	123<sup>3</sup>
4016	Other articles of vulcanised rubber other than hard rubber [other than erasers, rubber bands]	18%	III	123<sup>4</sup>
4016 [other than 4016 92 00]	Other articles of vulcanised rubber other than hard rubber (othe than erasers)	28%	IV	49
4016 [other than 4016 92 00]	Other articles of vulcanised rubber other than hard rubber [(othe than erasers, rubber bands, rice rubber rolls for paddy de-husking machine)]	5%	I	49<sup>5</sup>
4016 [other than 4016 92 00]	Other articles of vulcanised rubber other than hard rubber [(othe than erasers, rubber bands, rice rubber rolls for paddy de-husking machine)]	5%	I	49<sup>6</sup>
4017	Hard rubber (for example ebonite) in all forms, [including waste and scrap] articles of hard rubber	28%	IV	50
4017	Hard rubber (for example ebonite) in all forms, [including waste and scrap] articles of hard rubber	28%	IV	50 <sup>8</sup>
4017	Hard rubber (for example ebonite) in all forms, [including waste and scrap] articles of hard rubber	28%	IV	50
4017	Hard rubber (for example ebonite) in all forms, [including waste and scrap] articles of hard rubber	18%	III	123B<sup>9</sup>
4004 00 00	Waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom lig	18%	III	114<sup>1</sup>
4011 30 00	New pneumatic tyres, of rubber of a kind used on aircraft	5%	I	189<sup>1</sup>
4011 70 00	Tyres for tractors	18%	III	452A<sup>2</sup>
4013 90 49	Tube for tractor tyres	18%	III	452B<sup>8</sup>
4016 [other than 4016 92 00]	Other articles of vulcanised rubber other than hard rubber (othe than erasers)	28%	IV	49
4004 00 00	Powders and granules obtained from waste, parings and scrap of rubber (other than hard rubber)	18%	III	114<sup>1</sup>
4004 00 00	Waste, parings or scrap of rubber (other than hard rubber)	5%	I	188A<sup>1</sup>
4016 [other than 4016 92 00]	Other articles of vulcanised rubber other than hard rubber [(othe than erasers, rubber bands, rice rubber rolls for paddy de-husking machine)]	5%	I	49<sup>5</sup>
4016 [other than 4016 92 00]	Other articles of vulcanised rubber other than hard rubber [(othe than erasers, rubber bands, rice rubber rolls for paddy de-husking machine)]	5%	I	49<sup>6</sup>
4014	Condoms and contraceptives	0%	-	112

Other Exemptions

Description	Notification
Exemption from Registration - Small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST @6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.	Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.	Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund	Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSD	Notification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.	Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017

Departmental Clarifications / Case Law

Latex Based Adhesive

Reading Note 5(b), it becomes clear that the test to distinguish rubber based adhesives and non-rubber based adhesives or other adhesives is the test of composition and not the test of end-user. Generally, in matters of classification "composition test" is an important test and "end-user test" would apply only if the entry say so. Rubber content it the product in question is above 90 per cent. Latex based Adhesives falls under heading '40.01' and not under heading '35.06. Commissioner v Mannampalakkal Rubber Latex Works 2007 (217) ELT 161 (SC)

Off the Road Tyres

Off the road tyres are generally designed for fitment in motor vehicles like off-the-highway dumpers, and earth moving equipments like graders, bulldozers, scrapers, front-end loaders, draglines, excavators, etc. and they are normally of the sizes 12.00 - 24 and above. These OTR tyres are essentially equipped with extra heavy tread with tugged bar and block tyre patterns for high traction designed to operate on broken surface strewn with sharp, fresh blasted rocks and boulders as at mining, earth moving and construction sites. Special cut resistant and high abrasion resistant rubber compounds are used in their manufacture to resist damages by cuts and bruises. In the light of the clarifications issued by the Government of India and the wordings as is existing in the present tariff we have no doubt that the ADV Hand Cart tyres falls under sub-heading 4011.99 that is to say under 'other'.—Collector v Metro Tyres Ltd. 1996 (82) ELT 95 (Tribunal), This Order was maintained by Hon'ble Supreme Court.

Strap Sheet (Plap)

Straps, in the plap, were fully formed in shape and size with three buttons each for fitment to sole "and as it was possible to" obtain individual straps from the plap by activity of cutting and trimming, Interpretative Rule 2(a) reads thus: "Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled." According to the first part of the above Rule, where an incomplete or unfinished article has the essential character of the complete or finished article, it can be classified under the Tariff Heading covering the latter. In the present case, for classification of the plap as strap under SH 6401.92, it must be shown that it has the essential character of a strap. By cutting/trimming activity, a plap would yield numerous individual straps. Therefore it will be erroneous to hold that a Strap sheet (Plap) has the essential character of a strap, complete and finished. A Strap sheet cannot be classified as individual straps on the "essential character" test. The sheets are to be classified under 4008.29 as sheets of vulcanized rubber. -Premier Footwear Products (P) Ltd. v Commissioner 2007 (207) ELT 149 (Tri.-Chennai).

Hair Rubber Bands

Hair rubber bands fall under heading 4016. Prior to 22-9-2017, rubber bands attracted 28% GST. With effect from 22-9-2017, rubber bands attract 12% GST. [Notification No. 27/2017-Central Tax (Rate)]