Supply to railway parts

This query is : Resolved

Gurvinder Singh (Querist)
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22 July 2017 Dear Sir,

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.

with regards,

CA Altamush Zafar

CA Altamush Zafar (Expert)
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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.