wrong gst charged on HSN code 38220090, Goods and Services Tax - GST

[Sudha Sharma]

As per GST norms GST for HSN Code 38220090 or 3822 is 12% but some are charged 5% instead of 12%. Is is possible to purchase the material on 12% GST slab and sale the same on 5% GST slab with same HSN Code.

Where I can drop the image of invoices for same.

Posts / Replies

[KASTURI SETHI]

Complete details of products of both invoices are required. Details are sufficient, instead of copies of invoice. There must be some difference between both.

[Rajagopalan Ranganathan]

Sir ,

All diagnostic kits and reagents fall under heading 3822. These kits are attracting CGST @ 6% as per Sl. No. 80 of Schedule II of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended. If the kits are imported the IGST @ 12% is payable vide Sl. No.80 of Notification No.I do not find any other Notification which prescribe effective rate of CGST @ 2.5% on the above goods.1.2017-Integrated Tax (Rate) dated 28.6.2017 as amended.

If any registered person supply such kits at lower rate of CGST he will attract the penal provisions prescribed by CGST Act, 2017.

[YAGAY and SUN]

You may bring this matter to the kind knowledge of your Jurisdictional Commissioner for enforcing to charge the an appropriate rate of tax.

[Lakshman Balajepalli]

I agree with all above comments. All diagnostic companies are importing reagents in bulk by as animal origin 3002 (GST 5%) instead of using 38220090 (12% GST) which is incorrect or paying GST of only 5% for imports with HS code of 38220090 showing that the reagent is animal origin. As a result these companies are charging 5% to end user . Whereas some companies who are following the correct procedures end up paying more GST during imports and are unable to charge GST of 12% since en users (labs/distributors) are not accepting. Govt. should penalise all these importers who are importing with 5% GST and make them pay penalty with interest for paying low GST since last two years