GST rates and classidication for supply of Turbo Charger for railways

Supply of Turbo Charger for railways is classified under heading 8414 andattracts 18% GST-CBIC Clarification

CBIC has issued Circular No. 80/54 /2018-GST clarifying Applicability of GST on supply of Turbo Charger for railways as under:

Representations have been received seeking clarification regarding classification and applicable GST rate on Turbo Chargers supplied to railways. It is stated that some of the supplier are classifying turbo charges supplied to Railways under Chapter 86 and paying GST at the rate of 5% 

The turbocharger is a turbine-driven forced induction device that increases
an internal combustion engine’s efficiency and power output by forcing extra compressed air into the combustion chamber. It has the compressor powered by a turbine. The turbine is driven by the exhaust gas from the engine.

Turbo charger is specifically classified under chapter HS code 8414 80 30. It
continues to remain classified under this code irrespective of its use by Railways. Therefore, it is clarified that the turbo charger is classified under heading 8414 and attracts 18% GST

 

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