HSN code watch chains

[Arun Aggarwal]

Sir

There are no chapter notes in GST tariff as were in the Excise tariff.

There were many items in the excise tariff which were specifically by virtue of the chapter notes were taxed and classified in different chapters.

One of the example is the watch chains of precious metal which was specifically changed by the virtue of the chapter note from the chapter tariff 9113 to 7113 in excise.

Now under GST regime what should be the right HSN code for the watch chains of the precious metal as per logic it should be taxed under 9113 but as per the custom tariff it is still falls under 7113 by the virtue of the chapter note?

In future in the case of any difference should we follow the customs tariff for the reference or any other clarification or reference , method is there in the GST law for the classification confusion?

It becomes very important because of the vast difference in the rates.

Pls advice

Arun

[Rajagopalan Ranganathan]

sir,

As per explanation (iv) of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended " the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.

In view of the above watch chains of the precious metal are correctly classifiable under heading No. 7113 . This is my opinion. If you feel the rate of tax is on higher side, make a representation GST Council for reduction of the same.

[KASTURI SETHI]

Classification is always linked with the function and end use of any product. Keeping in view the purpose, it should fall under Chapter 91 but as suggested by Sh.Ranganathan Sir, you should make representation to the Chairman, GST Council. It is the better option. GST Council takes up such issues.

[Arun Aggarwal]

Thanks Mr RAJAGOPALAN RANGANATHAN Ji

[KASTURI SETHI]

Yes. Sh.Ranganathan Sir deserves kudos. It is his mind's product.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Rajagopalan.

[Arun Aggarwal]

sir

I think that now it is very clear that in case of any confusion on Tariff classifiaction/HSN we should refer it to the customs tariff.

Thanks

[Alkesh Jani]

Sir, the query is clear, but I would like to know that as there is no provisions governing classification disputes nor there is any method for classification of goods/services are prescribed in GST law. In case any classification disputes arises is there any provisions where SCN can be issued?

Thanks in Advance

With regards,

Alkesh Jani

Dear sir,

Need your clarification for the below.

My customer request me to provide the HSN code in the annexure instead of invoice. because they have given the Sales order in 1 line item but its contains 10 line items and 10 HSN code. They request us to mention any one HSN code and club the 10 items and show it as one in the invoice or ask us to given the HSN code in annexure.

Is that possible to give in anexure?

Kindly advice

AI Summary

Tariff classification rules: customs tariff interpretation norms apply to GST, affecting HSN placement and tax treatment.
Tariff classification under GST follows the interpretive rules of the Customs Tariff First Schedule as adopted by GST rate notifications, so customs Section and Chapter Notes and General Explanatory Notes inform HSN placement; accordingly, watch chains of precious metal are classifiable under the customs jewellery heading. Stakeholders should seek GST Council representation for rate adjustments if classification produces adverse tax outcomes. GST lacks a separate classification dispute procedure, and practitioners commonly refer to customs tariff practice; operational issues include whether multiple HSNs may be shown in an annexure instead of the invoice.