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

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.