2018 (6) TMI 427 - AAR - GST

Classification of goods - Roof Ventilators - rate of GST - Held that - As per the Rules for Interpretation of Customs tariff as made applicable to GST Tariff and General rules for Interpretation of the schedule, classification of Goods shall be governed by certain principles laid down therein. As per these general rules for interpretation, the heading which provides the most specific description shall be preferred to headings providing a more general description The primary function of these Roof ventilators is to provide ventilation by continuous extraction of air from the building. Even in trade parlance these goods are identified as Roof ventilators only and not as Windmills as contested by the applicant. Hence, in accordance with the general rules for interpretation, these Roof ventilators are correctly classifiable under the heading 8414 of the Customs tariff as adopted by GST. Ruling - Roof Ventilators falls under Schedule-III of Notification No. 1/2017 Central Tax (Rate) to GST Act, 2017 as amended and attracts a tax rate of 18% (CGST 9% TGST 9%) w.e.f. 15-11-2017.

Summary

Issues Involved:
- Classification of Goods "Roof Ventilators"
- Rate of Tax on "Roof Ventilators"

Classification of Goods "Roof Ventilators":
The applicant sought an advance ruling on the classification of "Roof Ventilators" under Section 97(1) of the TGST Act, 2017. The applicant argued that these ventilators are essentially windmills and should be classified under Entry 234 in the Notification No.1/2017 Central (rate) for the purpose of levy of CGST, SGST, and IGST. However, the Authority for Advance Ruling examined the issue based on the principles laid down in the CGST/TGST Act, 2017 and the applicable rules. The ruling stated that the primary function of these ventilators is to provide ventilation by extracting air from the building continuously. It was noted that even in trade parlance, these goods are identified as Roof Ventilators and not Windmills. Therefore, the Authority concluded that Roof Ventilators are correctly classifiable under heading 8414 of the Customs tariff as adopted by GST.

Rate of Tax on "Roof Ventilators":
Regarding the rate of tax applicable to "Roof Ventilators," the ruling referred to Notification No. 41/2017 - Central Tax (Rate) and G.O.Ms No. 250 issued by the Government of Telangana. The notification specified that Roof Ventilators fall under Schedule-III of Notification No. 1/2017 - Central Tax (Rate) to the GST Act, 2017. As per the notification, Roof Ventilators attract a tax rate of 18% (CGST 9% + TGST 9%) effective from 15-11-2017. The application filed by the company seeking the advance ruling was disposed of in accordance with the classification and tax rate determined by the Authority.

In conclusion, the judgment provided a detailed analysis of the classification of "Roof Ventilators" and the applicable tax rate under the GST regime. The ruling clarified that Roof Ventilators are distinct from windmills and should be classified under heading 8414 for tax purposes. Additionally, the notification specified the tax rate of 18% applicable to Roof Ventilators as per the relevant provisions.