Supply to railway parts

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This query is : Resolved

Gurvinder Singh (Querist)

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)

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.

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