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

Goods classification determines GST rate; locomotive parts under railway headings attract lower tax if they meet heading definitions.
Goods classification for GST depends on the intrinsic name and technical specifications of the item, not the purchaser. Items that meet the descriptive scope of railway locomotive or rolling stock headings qualify for the lower railway rate when supplied to the railway; however, goods classified under electrical machinery headings remain so even if sold to a railway. Not all supplies to a railway automatically receive the railway heading rate. A related query concerns whether input tax credit is fully available where supplies to a railway are taxed at the lower rate.