The Authority of Advance Ruling (AAR), Karnataka ruled that 12% GST applicable to manufacturing and supplying of the Railway parts including knuckle, toggle, lock, yoke, etc.
The applicant M/s Pragati Steel Casting Pvt. Ltd. is involved in the manufacture and supply of various steel castings, automobile parts, valves, etc. The applicant is supplying the parts to M/s Sanrok Enterprises, Faridabad, as per the specifications and 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 filed an application seeking a classification of certain parts such as Couplers, Knuckle, Locks, Toggle, Yoke etc. and the applicable GST rate thereon.
The applicant stated that the impugned goods are liable to be classified under HSN 7325 and the applicable rate of GST is 18%. Hence the applicant filed the application, seeking advance ruling on the question that whether railway parts such as Couplers, Knuckle, Locks, Toggle, Yoke, etc., manufactured and supplied to the buyer Sanrok Enterprises, who will further supply to the Indian Railways after assembly be classified under HSN 8607 or to be classified under HSN 7325 as other cast articles of Iron or Steel.
The Authority consists of members Dr. Ravi Prasad M.P. and Mashoodur Rehman Farooqui while considering the application held that the applicable rate of GST on the impugned goods is 5% in terms of entry number 241 of Schedule I to the Notification No.1/2017-Central Tax (Rate) dated June 28, 2017, till October 29, 2019, is now replaced by entry number 205 G of Schedule II and now the rate of GST is 12%, with no refund of unutilized input tax credit.
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