HSN CODE & GST RATE OF SCRAP CONVEYOR BELT

[VEMULA CHANDRASEKHAR]

We are making outward supply of an scrap conveyor belt what should be the HSN code & at what GST Rate it should b sold?

[Rajagopalan Ranganathan]

Sir,

Please indicate the constituent material out of which the conveyor belt is made of. Then only it is possible to classify the waste conveyor belt.

[KASTURI SETHI]

HSN 4004.0000 GST @18% See Notification No.1/17- CT(Rate) as amended vide Notification no.34/17-CT(Rate). Serial no.114 under Schedule-III. However, in pre-GST era, the Tribunal has held that scrap of conveyor belt is not chargeable to duty. Tribunal classified under Chapter/heading 4004.

[KASTURI SETHI]

Rightly advised by Sh.Ranganathan Sir. It is not possible to classify the goods correctly without knowing the composition of Conveyor Belt. However, here is one case pertaining to pre-GST era which can be helpful to understand the issue.

2006 (201) E.L.T. 580 (Tri. - Del.) = 2006 (3) TMI 495 - CESTAT, NEW DELHI STEEL AUTHORITY OF INDIA LTD. Versus COMMISSIONER OF CENTRAL EXCISE, RAIPUR

 

AI Summary

Classification of scrap conveyor belts: material composition determines HSN heading and consequent GST treatment. Determination of the correct HSN classification and applicable GST rate for scrap conveyor belts depends on the belt's constituent material; classification cannot be accurately fixed without identifying composition. One view cites Chapter/heading 4004 and the relevant GST schedule/notifications indicating a standard rate, while a pre GST tribunal decision treated conveyor belt scrap as not chargeable earlier though classified it under the same chapter heading. Suppliers should document material composition to support HSN and GST treatment.