Material Supply to Railway HSN 8533 or 8607, Goods and Services Tax - GST

[Pushkar Gupta]

Dear Sir

Our client are selling material which is parts of locomotive products and control panel which is listed in HSN code 8533 & 8537 under GST and rate of tax is 18% & 28%.

As per our understanding If Locomotive products and control panel are supplied to Railway will be covered under HSN 8602 & 8607 and rate of Tax is 5 %. Please advise on the same if material supplied to Railway and what will be rate of tax.

Pushkar Gupta

 

Posts / Replies

[RAMESH PRAJAPATI]

Goods are classified as per their Name & technical specification. Consumer of goods cannot influence the classification. Client has correctly classified control panels under HSN 8537 and Electrical Resister under 8533.

[Pushkar Gupta]

Dear Sir

It is specified under Rate Schedule of GST for Railway Locomotive & parts Under HSN from 8601 to 8608 are covered under Rate Schedule 5% if they are supplied to directly Railway.

If Products are Locomotive parts and directly billed to Railway, what is rate of GST.

Please advise.

[Ganeshan Kalyani]

I agree with Sri Ramesh Ji. The items are classified in the rate schedule provided in Notification 1/2017-CT (Rate). The HSN which you have mention has items related to Railway. It does not mean all the items supplied to Railway will cover under 5% rate. The item has to be referred as such without linking its supply.

[Rajagopalan Ranganathan]

Sir,

Heading 8533 & 8537 relate to electrical machinery and equipment and parts thereof. heading 8602 relates to other rail locomotive, locomotive tenders such as Diesel-electric locomotives, steam locomotives and tenders thereof. heading 8607 relates to parts of railway or tramway locomotives or rolling stock such as Bogies, bissel-bogies, axles and wheels and parts thereof.

Parts of railway locomotives are specifically covered by headings 8602 and 8607. Rate of gst is 5%.

[KASTURI SETHI]

There is no doubt about GST @5% as opined by Sh. Ranganathan, Sir.

[SHARAD DESHPANDE]

Dear Sir,

If we supply the material to Railway Coach Factories with GST@ 5% then what about ITC ? Can we claim full ITC or will it be restricted to 5% only.