FM Sitharaman calls for clarity on GST classification-related issues
Finance Minister Nirmala Sitharaman on Monday asked the goods and services tax (GST) officials to bring about clarity on classification-related issues at the earliest through appropriate channels.
Inaugurating the National Conference of Enforcement Chiefs of the State and the Central GST Formations here, Sitharaman exhorted the officials to engage with stakeholders to understand their concerns, enhance compliance, streamline processes, and work collaboratively towards making the tax system more transparent and efficient.
GST rates are based on classification of goods and services on the basis of harmonised system of nomenclature (HSN) codes and often this leads to various disputes and litigation. The issue is then addressed by various judicial and quasi-judicial fora, including GST commissioners, authority for advance rulings (AARs), courts.
The Central Board of Indirect Taxes and Customs (CBIC) brings about various circulars and frequently asked questions (FAQs) to clear the air over various classification issues based on the recommendations of the GST Council.
