Madam/Sir,
A product was classified in different HSN codes under the same chapter heading by different manufacturers prior to implementation of GST. After July 1 2017, Certain HSN codes attracted 18% GST while other attracted 28% GST. Now certain manufacturers are supplying under 18% GST and others under 28% GST.
How can this issue be resolved?
Forum Debate: GST Rate Variations Due to HSN Code Misclassification; Manufacturers Face 18% vs 28% Rates Dilemma A discussion on a forum addresses the issue of different GST rates applied to the same product due to varying tariff classifications under the Harmonized System of Nomenclature (HSN). A user highlights the problem faced by manufacturers who classified the same product under different HSN codes, resulting in differing GST rates of 18% and 28% post-GST implementation. Responses suggest that proper classification is crucial and that discrepancies arise from differences in sub-heading numbers. The discussion includes examples of similar issues in computer components and emphasizes the need for accurate HSN codes to resolve such anomalies. (AI Summary)
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