Case Law Details
In re JSL India Pvt. Ltd. (GST AAR Haryana)
Q1. What would be the rate of tax applicable on inter-state supply of parts of railways in unassembled condition?
Ans: From the explanatory note VII mentioned above, it is clear that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article only if there is assembly operation is involved. But in the present case assembly operation as well as addition of components is being done to prepare the parent assembly and thereafter being supplied to Indian Railways. Therefore, the goods supplied from Pathredi Unit to Chennai Unit cannot be classified in the same heading as the assembled article is classified.
3.11 Further, as per para 4 of the Circular No. 30/4/2018-GST dated 25.01.2018 issued by CBIC, it has been clarified that:
Only the goods classified under Chapter 86 supplied to the Railways attract 5% GST rate with no refund of unutilized input tax credit and that Other goods (falling in any other chapter) would attract the general applicable rates to such goods, even if supplied to railways.
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