Material Supply to Railway HSN 8533 or 8607

[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

 

AI Summary

Debate on GST Classification for Railway Parts: Are Locomotive Parts Taxed at 5% Under HSN 8602 and 8607? A discussion on a forum addresses the classification and applicable GST rates for materials supplied to railways, specifically locomotive parts and control panels. The initial query questions whether these items, listed under HSN codes 8533 and 8537 with GST rates of 18% and 28%, should instead be classified under HSN codes 8602 and 8607, which carry a 5% tax rate when supplied directly to railways. Various responses clarify that classification depends on the technical specifications, not the consumer, and confirm that railway parts under HSN 8602 and 8607 are indeed subject to a 5% GST rate. An additional query about Input Tax Credit (ITC) when supplying at a 5% rate remains unresolved.