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2019 (10) TMI 274 - AAR - GSTClassification of Supply - composite supply - principal supply - rate of GST - supply of desktops consisting of CPU, monitor, Keyboard and mouse or any combination of input/output unit - whether the CPU along with the Monitor or other input /output units supplied by the applicant is a ‘single supply’ of Desktop Computer classifiable under CTH 8471 50 or is a ‘Composite Supply’ as defined under Section 2(30) of the CGST /TNGST Act 2017, the Principal supply being the CPU classifiable under CTH 8471 and the applicable rate of GST on such supply? HELD THAT:- In terms of explanation (iii) and (iv) contained in the notification no. 1/2017-C.T.(Rate), dated 28.06.2017, “Tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification - the ‘Automatic Data Processor machine with Input/ Output Units are listed under CTH 8471 while monitors capable of directly connecting to and designed for use with ADP is specified under CTH 8528. Section Note 4 to Section XVI indicates that where a machine consists of individual components, intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. In the instant case in the tax invoice submitted by the applicant the product description is given as Desktop Computer which in common parlance and technical sense known as a system unit which is otherwise known as a central processing unit along with its connected peripheral units of input & output devices. In this case the processing unit gives essential character to the product in question. Hence, the desktop consisting of CPU, monitor, Keyboard and mouse supplied by the applicant is a single supply classified under CTH 8471. The applicable rate of tax for CTH 8471 is 9%-CGST under SI.No. 360 of Schedule-Ill of Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 & 9% -SGST under SI.No. 360 of Schedule-Ill of Notification No.II (2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017 as amended.
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