Understanding GST Classification Appeals in GSTAT

GST classification appeals involve disputes over correct HSN (Harmonized System of Nomenclature) codes for goods and SAC (Services Accounting Code) for services. These classification disputes often result in significant tax differential demands, making classification upheld in GSTAT to be very significant for businesses.

Types of Classification Disputes We Handle

Product Classification Appeals

• HSN Code Disputes – Goods classification under correct HSN codes

• Multi-component Products – Complex products with multiple classifications

• Processed vs Raw Materials – Value-added product classification issues

• Finished vs Semi-finished – Manufacturing stage classification disputes

Service Classification Appeals

• SAC Code Disputes – Service classification under appropriate SAC codes

• Mixed Supply Issues – Goods and services combination classification

• Principal vs Ancillary – Primary service identification disputes

• Composite Supply – Single supply with multiple elements classification

Rate Classification Appeals

• Tax Rate Disputes – 5% vs 12% vs 18% vs 28% rate classification

• Exemption Challenges – Zero-rated vs exempt supply classification

• Concessional Rate – Special rate applicability disputes

• Notification Interpretation – GST rate notification applicability issues

Special Category Classifications

• Essential vs Luxury – Life-saving drugs vs general medicines classification

• Food vs Non-food – FSSAI approved vs general product classification

• Educational vs Commercial – Educational institution service classification

• Healthcare vs General – Medical vs general service classification

Classification Appeal Strategies

Technical Evidence Building

GSTAT classification should be emphasised through:

• Independent Testing – Laboratory analysis and certification

• Expert Testimony – Technical expert witness examination

• Industry Standards – BIS, ISO, and international standard compliance

• Trade Practice – Commercial understanding and market practice evidence

Legal Precedent Application

• Favorable Judgments – Application of pro-taxpayer classification decisions

• Supreme Court Principles – Constitutional interpretation of classification rules

• International Practice – WCO recommendations and global classification trends

• Departmental Instructions – Favorable circulars and clarification application

Industries We Serve for Classification Appeals

Pharmaceutical Industry

• Active Pharmaceutical Ingredients – API vs formulation classification

• Life-saving Drugs – Essential medicine vs general drug disputes

• Ayurvedic Products – Medicine vs food supplement classification

• Medical Devices – Equipment vs consumable classification

Chemical Industry

• Industrial Chemicals – Raw material vs processed chemical classification

• Specialty Chemicals – Custom vs standard chemical classification

• Petrochemicals – Crude vs refined product classification

• Agrochemicals – Pesticide vs fertilizer classification disputes

Automotive Industry

• Auto Components – Parts vs accessories classification

• Electric Vehicles – Motor vehicle vs battery classification

• Two-wheeler Parts – OEM vs aftermarket classification

• Commercial Vehicles – Goods vs passenger vehicle classification

Information Technology

• Software Services – Development vs maintenance classification

• Cloud Services – Infrastructure vs software service classification

• Digital Products – Goods vs service classification disputes

• Data Processing – IT service vs data service classification

FAQs – GSTAT Classification Appeals

Q1: What is the time limit for classification appeals to GSTAT?
A: Classification appeals must be filed within 3 months from the appellate authority order confirming the classification dispute.

Q2: Can we change product classification retrospectively?
A: Generally no, but in cases of departmental error or legal precedent changes, retrospective classification changes may be possible through GSTAT.

Q3: What evidence is strongest in classification disputes?
A: Technical expert opinions, laboratory test reports, and established trade practice evidence carry maximum weight in GSTAT proceedings.

You may connect with AMLEGALS, to take an informed decision in GST issues.

• Email: info@amlegals.com
• Boardline: +91-8448548549
• Office Locations: Ahmedabad, Bengaluru, Chennai,Hyderabad, Kolkata, Mumbai, New Delhi, Prayagraj, Pune & Surat