Please guide us on following issues supply to Railway-regarding
1. Under excise we were supplying Machined Railway Parts (Finished) under chapter 86079990. Now under Notification No. 1/2017-Integrated Tax (Rate) and schedule I chapter 8607990 falls under 5%.
2. We are selling Cast Railway Parts (Rough Casting). Now casting falls under 18% and Railway parts falls under 5%. What would be the rate of tax ?
Please clear whether we should charge 5% or 18% supply of cast railway parts (Rough Casting).
3. Whether we should mention other charges like packing & freight after tax or we have to pay tax on it and have to mention them before tax amount.
22 July 2017
A casting can be any casting, but you are supplying specifically for parts of railway. You should charge 5% on your railway casting as it is a more specific product under railway parts. Packing and freight will be added to the value of goods and GST shall be charged @ 5% on them too.
CAclubindia
