Wear plates” and “Tamping Tool” manufactured specifically for Railways fall under 860799 (Other Parts of railway) & taxed@12%

The Gujarat Authority for Advance Ruling has determined that 'wear plates' and 'tamping tools' specifically manufactured for use in railway machinery, such as Ballast Cleaning Machines and Tie Tamping Machines, fall under the classification code 860799. Consequently, these items are subject to a Goods and Services Tax (GST) rate of 12%. This ruling clarifies the tax treatment for specialised railway components supplied to Indian Railways.

GUJARAT AUTHORITY FOR ADVANCE RULING,
GOODS AND SERVICES TAX,
A/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/47/2020
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2018/AR/69)
Date: 30.07.2020

Name and address of the applicant : M/s Clad Weld Technologies Pvt. Ltd.,
D-507, Vraj Residency, Near Air Force, Makarpura, Vadodara-390010 (Gujarat).

GSTIN of the applicant :24AAGCC4823J1ZQ
Date of application : 26.12.2018
Clause(s) of Section 97(2) of CGST / GGST Act, 2017, under which the question(s) raised. : (a) Classification of goods and/or services or both.
(e) Determination of the liability to pay tax on any goods or services or both.
Date of Personal Hearing : 09.07.2020 (Through Video Conferencing)
Present for the applicant :Shri Rachit Shah CA

B R I E F FA C T S

The applicant, vide their application for Advance Ruling, has submitted that they are having factory at Survey No. 428/1, Village-Nana Fofalia, Dabhol, Vadodara, Gujarat-391210 engaged in the manufacture of Wear plats & Tampering tools specially manufactured as per RDSO specifications and used by Railways as a part of Ballast Cleaning Machine and Tie Tamping Machine.

2. The applicant further submitted that M/s Trio Enterprise having GSTIN: 24AFRPS0617P1ZU has got orders from Indian Railways to supply Wear plats & Tampering tools and the same order is given by M/s Trio Enterprise to the applicant as back to back order. Here, the applicant is instructed to manufacture wear plates and tamping tools as per RDSO drawing No. mentioned in the Work Order as given by M/s Trio Enterprise, for South Eastern Railway and also instructed to deliver the same to them.

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