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2021 (3) TMI 916 - AAR - GSTClassification of goods - rate of GST - erecting and commissioning of lifts installed for domestic use - HELD THAT - Explanatory Notes to the Scheme of Classification of Services stipulates that the SAC 995466 deals with Lift and escalator installation services and includes installation services of lifts, escalators, travelators (moving sidewalks) etc. Thus the impugned service is clearly covered under SAC 995466. Applicable rate of GST - HELD THAT - Notification 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, stipulates the rate of GST on the services covered under 995466 at 18%, in terms of Sl. No.3(xii). Further the said GST rate is irrespective of the place of installation i.e. at the residence or at the mall or shopping complex and also irrespective of the intended usage of the lifts/escalators either for domestic use or commercial use.
Issues: Rate of tax for erecting and commissioning of lifts for domestic use; Rate of tax for erecting and commissioning of escalators for domestic use.
Issue 1: Rate of tax for erecting and commissioning of lifts for domestic use The applicant, a private limited company engaged in trading and erection of lifts, sought an advance ruling on the rate of GST applicable to the erection and commissioning of lifts for domestic use. The applicant was discharging tax at 18%, but upon learning that competitors were charging GST at 12%, they filed the application. The Authority found the impugned service falls under SAC 995466, covering lift and escalator installation services. Referring to Notification 11/2017-Central Tax (Rate), the Authority determined the applicable GST rate as 18%, irrespective of the installation place or intended usage, for both domestic and commercial use. Issue 2: Rate of tax for erecting and commissioning of escalators for domestic use The applicant also sought clarification on the rate of GST for erecting and commissioning of escalators for domestic use. The Authority, after considering the relevant facts and submissions, concluded that the services of erecting and commissioning escalators also fall under SAC 995466, attracting a GST rate of 18% as per Notification 11/2017-Central Tax (Rate). The ruling specified that the 18% GST rate applies to both lifts and escalators installed for domestic use, based on the classification of services under SAC 995466. In summary, the Authority for Advance Rulings, Karnataka, in its judgment, clarified that the rate of GST applicable to the erection and commissioning of lifts and escalators for domestic use is 18%, as per Notification No. 11/2017 (Central Tax Rate), based on the classification under SAC 995466. The ruling emphasized that the GST rate remains consistent at 18% regardless of the installation place or the intended usage of the lifts and escalators, covering both domestic and commercial scenarios.
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