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

GST rate mismatch on HSN classification may trigger penalties for misclassification and undercharged tax. Discrepancy arises where diagnostic kits and reagents properly classifiable under heading 3822 are subject to the higher notified GST rate, while some importers/misdeclarants classify the same goods under animal origin codes attracting a lower GST slab; such misclassification can trigger penal provisions and interest under the CGST Act, distort input tax positions, and warrants reporting to the jurisdictional commissioner with full product particulars to establish correct classification.