Rate classification

[Shrikanth Parmarthy]

Dear experts,

Facts:

1. There is ambiguity in the industry relating to rate classification of a particular product. The industry is of the view of applying a HSN where the GST rate is lower whereas the GST department is contending a HSN where GST rate applicable will be higher than the one claimed by Industry

2. There a 2 high court decisions where rate of the product is passed in favour of the Industry. Against one of the high court decision the GST Department has approached the supreme court and court has rejected the plea made by department.

Queries:

1. Should the industry wait for the GST council/CBIC to release a rate amendment notification based on the Supreme court rejection as mentioned above. OR

2. Should the industry proceed with apply the HSN with lower GST rate based on the supreme court rejection.

Kindly provide your inputs on how to proceed further.

AI Summary

GST Classification Dispute Resolved: Industry Wins Lower Tax Rate Based on Consistent Judicial Interpretations of HSN Code A discussion forum explores GST rate classification ambiguity where an industry seeks guidance on applying a lower Harmonized System of Nomenclature (HSN) code. Two high court decisions favor the industry, and the Supreme Court rejected the tax department's appeal. Experts recommend proceeding with the lower GST rate while maintaining documentation and monitoring potential future notifications, emphasizing the need for careful case-by-case assessment of legal precedents and specific circumstances.