GST on erection & commissioning of lifts/ escalators for domestic use @ 18%
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Name of Applicant: |
BG Elevators and Escalators Private Limited |
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Appeal No.: |
Advance Ruling No. KAR ADRG 11/2021 |
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Date of Ruling: |
09-03-2021 |
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Ruling pronounced by: |
Authority for Advance Ruling, Karnataka |
Question before Authority:
- What is the rate of tax required in respect of erecting and commissioning of lifts installed for domestic use?
- What is the rate of tax required in respect of erecting and commissioning of escalators installed for domestic use?
Brief Facts:
- The applicant is a registered private limited company engaged in trading as well as erection and commissioning of lifts and escalators for domestic as well as commercial use based on customer orders.
- The applicant is presently discharging tax @ 18% on erection and commissioning of lifts for domestic as well as commercial use.
- However, they learnt that their competitors are charging GST @ 12% on the erection and commissioning of lifts on immovable property for domestic use and hence filed the instant application.
Ruling by Authority:
- Explanatory Note to the Scheme of Classification of Services stipulates SAC 995466 which delas with “Lift and escalator installation services” and includes installation services of lifts, escalators, travelators (moving sidewalks) etc. Thus, the service is clearly covered under SAC 995466.
- Notification No. 11/2017- CT(Rate) dated 28-06-2017 stipulates the rate of GST on the services covered under 995466 @ 18%. 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 lift/ escalators either for domestic use or commercial use.
Therefore, the rate of GST applicable to erection and commissioning of lifts/ escalators installed for domestic use is 18% under SAC 995466.
Read complete order: http://www.gstcouncil.gov.in/sites/default/files/AAR-Dynamic/KAR_AAR_11_2021_09.03.2021_BG%20EEPL.pdf
