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Railway parts such as Couplers, Knuckle, Locks, Toggle, Yoke etc., manufactured and supplied by the applicant are classifiable under HSN 8607 and effective from 30.09.2019, the rate of GST is 12% with no refund of unutilized input tax credit

Authority for Advance Ruling — Classification and Taxability on Railway Parts – The applicant engaged in manufacture and supply of various steel castings, automobile parts, valves etc. The applicant is supplying the parts to one dealer as per the specifications & drawings, who in turn supply the same to the Indian Railways, on classifying the said goods under HSN 8607 & on discharging the GST @5%. The applicant got opinion that the impugned goods are liable to be classified under HSN 7325 and the applicable rate of GST is 18%. Hence the applicant sought an advance ruling whether Railway parts such as Couplers, Knuckle, Locks, Toggle, Yoke etc., manufactured and supplied to the dealer, who in turn supply to Indian Railways after assembly, be classified under HSN 8607 or to be classified under HSN 7325 as other cast articles of Iron or Steel?
Held that:- The Hon’ble Authority for Advance Ruling held that Railway parts manufactured and supplied by the applicant are classifiable under HSN 8607. The applicable rate of GST is 5% in terms of entry number 241 of Schedule I to the Notification No.1/2017-CT (Rate) dated 28.06.2017, till 29.09.2019 and effective from 30.09.2019, the rate of GST is 12%, in terms of entry number 205G of Schedule II to the Notification No.1/2017-CT (Rate) dated 28.06.2017, as amended by Notification No.14/2019-CT (Rate) dated 30.09.2019, with no refund of unutilized input tax credit, in terms of Sl.No.14 of Notification No.5/2017-CT (Rate) dated 28.06.2017.—Prragathi Steel Castings Pvt. Ltd., In Re… [2020] 26 TAXLOK.COM 071 (AAR-Karnataka)