For displaying the GST rates and HSN codes the High court Allahabad has said to the bidders to mention it in the notice inviting the Tender to make sure about constant bidding for all the participants.
Two judges Sunita Agarwal & Jayant Banerji have said that it is important in order to assure that all tenders and bidders are provided a “level playing field”.
“The mentioning of the HSN Code in the tender document itself shall resolve all disputes relating to fairness and transparency in the process of selection of bidder, by providing ‘level playing field’ to all bidders/tenderers in the true spirit of Article 19(1)(g) of the Constitution of India”
Court said, “whether the classification of HSN Code is integral to the tendering process, i.e., whether it has an impact on the selection of tenderers or the choice of tenderer while ranking them after opening the financial bids”.
Notice is given by the respondent Diesel Locomotive works inviting e-tender for provision of turbo wheel impeller balance assembly.
The applicant challenged that the notice is given by the Railway Board which shows that bidders were needed to mention the percentage for the content in the material as per the make in India Policy and the applicant was imposed to pay more for the bid who has quoted less for GST rate as the value is not being stated in the credentials. Petitioner No. 6 (Krishna Bearing) had rated a GST rate of 5% while the applicant Bharat Forge, rated a GST rate of 18% 
Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28%. Read more , in real it enhances the bidding price of the applicant.
The GST department has challenged the rates on the products and services that have been fixed through the goods and service tax council by using the Harmonized System of Nomenclature (HSN) Codes for each product and service, to define the rates at which GST would be suitable. The applicant has rated the GST value 18% as a liable rate despite in absence of the HSN codes for every product and service.
NIT (Notice inviting tender), as well as the tender document published through respondent no.1, specified the appropriate HSN code relevant to the provision product.
“The HSN code (Harmonized System of Nomenclature) is provided for each product/service by GST Council to specify the rate at which GST would be applicable. The suppliers have to quote the HSN Code of the product to be supplied by them in the tender document, itself. The mentioning of the correct HSN Code is necessary to determine the GST rate (GST value) which is to be added to the base price to arrive at the final price offered by the bidder/tenderer.”
The most important process stated by the court is to specify the GST rate and HSN codes in the tender credentials addressed to the Diesel Locomotive Works to specify it in the NIT.
