Different GST rates for the same product due to different tariff classification

[Nikhil Oltikar]

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?

AI Summary

Tariff classification determines GST rate; uniform classification required to resolve rate discrepancies across suppliers; prompt GST Council guidance.
Applicable GST rate is determined by the complete HSN (chapter, heading and sub heading); apparent rate differences for the same product reflect differences in sub heading classification, which must be resolved by examining precise product description and use, the Central Excise Tariff Act and its amendments, relevant judicial pronouncements, and administrative clarifications such as GST Council FAQs.