Chapter 42 - Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)

Notes

For the purposes of this Chapter, the term "leather" includes chamois (including combination chamois) leather,patent leather, patent laminated leather and metallised leather.
This Chapter does not cover:
1. sterile surgical catgut or similar sterile suture materials (heading 3006);
2. articles of apparel or clothing accessories (except gloves, mittens and mitts), lined with furskin or artificial furor to which furskin or artificial fur is attached on the outside except as mere trimming (heading 4303 or 4304);
3. made up articles of netting (5608);
4. articles of Chapter 64;
5. headgear or parts thereof of Chapter 65;
6. whips, rigid-crops or articles of heading 6602;
7. cuff-links, bracelets or other imitation jewellery (heading 7117):
8. fittings or trimmings for harness, such as stirrups, bits, horse, brassess and buckles, separately presented (generally Section XV);
9. strings, skins for drums or the like, or other parts of musical instruments (heading 9209);
10. strings, skins for drums or the like, or other parts of musical instruments (heading 9209);
11. articles of Chapter 94 (for example, furniture, lamps and lighting fittings);
12. articles of Chapter 95 (for example, toys, games, sports requisites); or
13. buttons, press-fasteners, snap-fasteners, press-studs, button moulds or other parts of these articles, button blanks, of heading 9606.
(A) In addition to the provisions of Note 2 above, heading 4202 does not cover:
1. bags made of sheeting of plastics, whether or not printed, with handles, not designed for prolonged use (heading 3923);
2. articles of plaiting materials (heading 4602).
(B) Articles of headings 4202 and 4203 which have parts of precious metal or metal clad with precious metal, of natural or cultured pearls, of precious or semi-precious stones (natural, synthetic or reconstructed) remain classified in those headings even if such parts constitute more than minor fittings or minor ornamentation, provided that these parts do not give the articles their essential character. If, on the other hand, the parts give the articles their essential character,the articles are to be classified in Chapter 71.
For the purposes of heading 4203, the expression "articles of apparel and clothing accessories" applies, inter alia,to gloves, mittens and mitts (including those for sport or for protection), aprons and other protective clothing, braces, belts, bandoliers and wrist straps, but excluding watch straps (heading 9113).

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
4201	Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material	28%	IV	51
4202	School satchels and bags other than of leather or compositionl leather	18%	III	124
4203	Gloves specially designed for use in sports	12%	II	90<sup>4</sup>
4205	Other articles of leather or of composition leather	28%	IV	54
4206	Articles of gut (other than silk-worm gut), of goldbeater's skin,of bladders or of tendons	28%	IV	55
4201	Saddlery and harness for any animal (including traces, leads, kneepads, muzzles, saddle cloths, saddle bags, dog coats and the like), of any material	18%	III	123C
4202	Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco-pouches, tool bags, sports bags, bottle cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper[other than handbags and shopping bags, of cotton or jute]	18%	III	124<sup>1</sup>
4202	Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling bags, insulated food or beverages bags. toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, to-bacco- pouches, tool bags, sports bags, bottle-1 cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than School satchels and bags other than of leather or composition leather, Toilet cases, Hand bags and shopping bags, of artificial plastic material, of cotton, or of jute, Vanity bags, Handbags of other materials excluding wicker work or basket work]	28%	IV	52<sup>2</sup>
4203	Articles of apparel and clothing accessories, of leather or of composition leather	28%	IV	53<sup>*</sup>
4203	Articles of apparel and clothing accessories, of leather or of composition leather [other than gloves specially designed for use in sports]	18%	III	124A<sup>*</sup>
4205	Other articles of leather or of composition leather	18%	III	124B
4206	Articles of gut (other than silk-worm gut), of goldbeater's skin,of bladders or of tendons	18%	III	124C
4202 12 10	Toilet cases	18%	III	125<sup>*</sup>
4202 22 10	Hand bags and shopping bags, of artificial plastic material	18%	III	126<sup>*</sup>
4202 22 20	Hand bags and shopping bags, of cotton	5%	I	89<sup>3</sup>
4202 22 30	Hand bags and shopping bags, of jute	5%	I	90<sup>4</sup>
4202 22 40	Vanity bags	18%	III	129<sup>*</sup>
4202 29 10	Handbags of other materials excluding wicker work or basket work	18%	II	91
4202 22 20	Hand bags and shopping bags, of cotton	5%	I	127<sup>*</sup>
4202 22 30	Hand bags and shopping bags, of jute	5%	I	128<sup>*</sup>
3825	Municipal waste, sewage sludge, clinical waste	0%	-	110

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 0 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
Concessional GST on Specified Handicraft	Notification No. 21/2018-C.T. (Rate), dated 26-7-2018

Departmental Clarifications / Case Law

Non-Woven Carry Bags

Non-Woven Carry Bags classifiable under CTH 4202 22 l0;Cotton Carry Bags classifiable under CTH 4202 22 20: Upto 14-11-2017, Non-woven and Cotton Carry Bags/Shopping Bags were taxable at 9% under CGST Act, 2017 and at 9% under SGST Act, 20 17 as per SI. Nos. 126 and 127 of Schedule-III of Notification No.01/2017-C.T. (Rate)Frorn 15-11-2017 Cotton Carry Bags/Shopping Bags are taxable at 6% under CGST Act, 2017 and at 6% under SGST Act, 2017 as per SI. No. 89 of Schedule-11 while Non-woven Carry Bags are taxable to 9% under COST Act, 2017 and 9% under SGST Act, 2017 as per Si. No. 124 of Schedule-Ill of Notification No. 01/2017-C.T. (Rate), In Re: Senthilkumar Thilagavathy, 2019 (21) as T .L. 226 (A.A.R. - GST)

Beef Leather Cut Pieces For Making Car Seat Covers-

Tribunal classified goods under 4115- Department claims classification under 4205- The Hon'ble Supreme Court remanded the matter to re-examine classification under two more rival heading under Chapter 87 and 9401 90 00- Commissioner v Toyota Susho Pvt. Ltd. 2015 (326) ELT 638 (S.C)

Jute bags

Jute bags fall under HS Code 4202 22 30. Prior to 15-11-2017, Jute bags and Khadi/ cotton bags attracted 18% GST. With effect from 15-11-2017, Jute bags and Khadi/cotton bags attract GST rate of 12ck.[Notification No. 41/2017-Central Tax (Rate)] & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017

Khadi bags

Khadi/cotton bags fall under HS code 4202 22 20. Prior to 15-11-2017, Jute bags and Khadil cotton bags attracted 18% GST. With effect from 15-11-2017, Jute bags and Khadi/cotton bags attract GST rate of 12%. [Notification No. 41/2017-Central Tax (Rate)] C.B.I. & C. Circular F. No. 332/2/2017-7RU, dated 7-12-2017