2019 (2) TMI 1740 - AAR - GST

Liability for collection of TCS - Aluminium ladders -Generally used for Domestic / House -hold purpose. Made of aluminium metal and corners are concealed with plastic caps - Aluminium industrial ladders - Aluminium is majorly used with other Metals (S.S M.S) used for tools and additional support - HELD THAT - In the present case the goods under question, i.e., the Aluminium ladders -Generally used for Domestic / House -hold purpose, do not fall under the entry no 186 of Schedule II of Notification 01/2017 of IGST Act attracting the tax rate of 12% (6%CGST 6% SGST) as contested by the Applicant. The Aluminium Ladders, meant for Household purpose are not the class of goods akin to the HSN Code 7615 of Table, kitchen or other household articles. These are meant to be used at any place, and necessarily not be classified akin to kitchen or household articles basing on the description, purpose and use of the goods. Irrespective of the end use of the ladders whether for domestic purpose or for Commercial use, Aluminium ladders come under HSN code 7616, Other articles of Aluminium and accordingly attract Tax rate of 18%.

Summary

Issues:
1. Classification and tax liability of Aluminium ladders used for domestic and industrial purposes.

Analysis:
The case involved an application for Advance Ruling regarding the tax liability of Aluminium ladders used for domestic and industrial purposes under the Central Goods & Services Tax Act and Andhra Pradesh Goods & Services Tax Act. The applicant sought clarification on the tax rate applicable to Aluminium ladders meant for household use and Aluminium industrial ladders used with other metals. The Authority examined the issues raised, including taxability, classification, applicable tax rates, and eligibility for exemption under the respective GST Acts.

Regarding the Aluminium ladders used for domestic purposes, the Authority determined that they should be classified under HSN code 7616 as "Other articles of Aluminium," attracting a tax rate of 18% (9% CGST + 9% SGST). The Authority noted that these ladders are not akin to household articles specified under HSN code 7615, as they are designed for general use and not limited to household or kitchen applications. Therefore, the tax rate applicable to these Aluminium ladders was deemed to be 18%.

Similarly, the Authority ruled that Aluminium industrial ladders used for tools and additional support should also be classified under HSN code 7616 and taxed at 18% (9% CGST + 9% SGST). The decision was based on the same reasoning as the classification of Aluminium ladders for domestic use. The ruling clarified that regardless of the end-use of the ladders, whether for domestic or commercial purposes, they fall under the category of "Other articles of Aluminium" and are subject to an 18% tax rate.

In conclusion, the Authority's ruling established that both Aluminium ladders used for domestic purposes and Aluminium industrial ladders should be classified under HSN code 7616 and attract a tax rate of 18% (9% CGST + 9% SGST) under the GST Acts. The decision provided clarity on the tax liability of these products, ensuring uniformity and consistency in their classification and taxation under the relevant GST legislation.