2022 (5) TMI 965 - AAR - GST

Classification of goods - rate of GST - Fans used in Poultry House for the purpose of Air circulation - to be classified under HSN 84145930 or not - HELD THAT - It is found from the submitted brochure that the applicant supplies Industrial grade fans. From the specifications submitted it is noted that the electric motor of these fans have an output exceeding 125 W. These fans are Industrial fans attracting HSN 84145930. With effect from 15-11-17 these industrial fans are liable to CGST at 9% vide Sr no. 317B to Schedule III of Notification 1/2017-CT(R) dated 28-6-17.

Summary

Issues:
Determining the applicable GST rate on Air Circulation Fans supplied to Poultry House and Industry.

Analysis:
The applicant, M/s. Star Enterprise, sought an Advance Ruling on the GST rate applicable to Air Circulation Fans supplied mainly to Poultry House for ventilation purposes and a few fans supplied to the Industry. The applicant provided technical specifications, a sales invoice, and a brochure for reference.

During the virtual hearing, the applicant's representatives reiterated their submission, while the Revenue did not submit any comments or appear for the hearing.

Upon careful consideration of the submissions and the provided brochure, the Authority noted that the applicant supplies Industrial grade fans with electric motors having an output exceeding 125 W. These fans were classified as Industrial fans under HSN 84145930. The Authority found that starting from 15-11-17, these industrial fans are subject to CGST at 9% as per Sr no. 317B to Schedule III of Notification 1/2017-CT(R) dated 28-6-17.

Consequently, the Authority ruled that the GST rate applicable to the said Industrial fans is 18%, comprising of CGST at 9% and SGST at 9%.

This judgment clarifies the applicable GST rate on Industrial fans supplied by the applicant to both Poultry House and Industry, providing a clear directive based on the technical specifications and relevant notifications.