wrong gst charged on HSN code 38220090

[Sudha Sharma]

As per GST norms GST for HSN Code 38220090 or 3822 is 12% but some are charged 5% instead of 12%. Is is possible to purchase the material on 12% GST slab and sale the same on 5% GST slab with same HSN Code.

Where I can drop the image of invoices for same.

[KASTURI SETHI]

Complete details of products of both invoices are required. Details are sufficient, instead of copies of invoice. There must be some difference between both.

[Rajagopalan Ranganathan]

Sir ,

All diagnostic kits and reagents fall under heading 3822. These kits are attracting CGST @ 6% as per Sl. No. 80 of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended. If the kits are imported the IGST @ 12% is payable vide Sl. No.80 of Notification No.I do not find any other Notification which prescribe effective rate of CGST @ 2.5% on the above goods.1.2017-Integrated Tax (Rate) dated 28.6.2017 as amended.

If any registered person supply such kits at lower rate of CGST he will attract the penal provisions prescribed by CGST Act, 2017.

[YAGAY andSUN]

You may bring this matter to the kind knowledge of your Jurisdictional Commissioner for enforcing to charge the an appropriate rate of tax.

[Lakshman Balajepalli]

I agree with all above comments. All diagnostic companies are importing reagents in bulk by as animal origin 3002 (GST 5%) instead of using 38220090 (12% GST) which is incorrect or paying GST of only 5% for imports with HS code of 38220090 showing that the reagent is animal origin. As a result these companies are charging 5% to end user . Whereas some companies who are following the correct procedures end up paying more GST during imports and are unable to charge GST of 12% since en users (labs/distributors) are not accepting. Govt. should penalise all these importers who are importing with 5% GST and make them pay penalty with interest for paying low GST since last two years

AI Summary

Incorrect GST Rates on HSN Code 38220090: Companies Charging 5% Instead of 12% May Face Penalties Under CGST Act A discussion on a forum addressed the issue of incorrect GST rates being applied to products under HSN Code 38220090. The correct GST rate for these products is 12%, but some companies are charging 5%. Participants suggested that complete product details are needed to understand the discrepancy. It was noted that diagnostic kits under this code should attract 12% IGST if imported, and any deviation could lead to penalties under the CGST Act, 2017. It was recommended to report such discrepancies to the Jurisdictional Commissioner for enforcement. Some companies are allegedly misclassifying goods to benefit from a lower tax rate.