Automobile companies required to pay 28% GST on imported plastic products

The Customs department has commenced issuing notices to several automobile manufacturers requiring them to pay Goods and Service Tax (“GST”) at the rate of 28% instead of 18% towards imported plastic goods such as ashtrays, floor mats etc. While plastic products attract 18% GST, they are being utilized as auto components that attract 28% GST. This raises a question whether separate tax rates can b…