GST 18% ON AIR DRYER FOR RAILWAY LOCOMOTIVES: RAJASTHAN AAR CLARIFIES CLASSIFICATION UNDER CHAPTER 8421

GST 18% ON AIR DRYER FOR RAILWAY LOCOMOTIVES: RAJASTHAN AAR CLARIFIES CLASSIFICATION UNDER CHAPTER 8421

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- M/s Blackstone Diesels

(GST AAR RAJASTHAN)

Advance Ruling No.RAJ/AAR/2018-19/26

Date of Judgment/Order- 13th December 2018

IMPORTANT PARAGRAPHS

Para No. 1. SUBMISSION OF THE APPLICANT:
a. The applicant is a trader in Air dryer which is used by Railway in breaking system of locomotives. The applicant has received a purchase order number 69185017150035 dated 14.03.2018 from Western Railway for “Air Dryer complete with final filter for MEMU DMC” (02quantity).
b. The applicant also submitted few additional documents during the personal hearing along with copy of invoice (wherein goods are received by the applicant from the supplier-manufacturer, M/s Trident Pneumatics Pvt. Ltd., Coimbatore,) dated 27.03.2018.
c. The applicant is engaged in supply of various goods to the railways. Such Goods supplied to railways have different classification. Now there is an issue regarding the Air Dyer with filter supplied for use in breaking system of locomotive and Repair/Spare Kit supplied to railway.

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

Applicant has sought ruling to be pronounced under section 97(2) (a) of the CGST Act 2017, on the following question:
Tax rate on “Air dryer complete with final filter for used in breaking system of locomotive supplied to Railway” as per order attached given by Western Railway.

RULING

The ‘Air Dryer complete with final filter for used in breaking system of locomotive’ has been rightly classified by the supplier under Chapter 8421 of GST Tariff Act 2017 which attracts GST @18% (CGST 9% + SGST 9%).