TMI Blog2022 (8) TMI 1237X X X X Extracts X X X X X X X X Extracts X X X X ..... lation services - As per the submissions of the applicant the work orders are given by clients for supply, erection and commissioning of lifts tailor-made as per customer specifications and hence the services are appropriately classifiable under SAC 995466 being the most specific description. Rate of GST - HELD THAT:- The supply, erection, commissioning and installation of tailor/custom made lifts/elevators undertaken by the applicant falls under SAC 995466 and attracts GST at the rate of 18% as per the above entry irrespective of whether it is installed or intended to be used in a single dwelling or multi-dwelling or multi-storied residential or industrial or commercial buildings. - KER/129/2021 - - - Dated:- 18-2-2022 - DR S. L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54; GST at the rate of 18% is charged. Recently there is an increased demand for elevators in independent villas. As per Notification No. 11/2017, a GST rate of 12% only is payable for the composite supply of works contract service in such cases when it relates to single residential units. Section 97(2) of the CGST Act, 2017 stipulates the questions on which an advance ruling can be sought and the advance ruling is sought on the issues covered under Section 97(2) (a) relating to the issue of classification. 4.2. The applicant submits the following in connection with the classification of the service. The relevant clause under construction services falling under Heading 9954; SI No.3(v)(b) of Notification No. 11/2017 (GST rate amended) re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors as a subcontract. There are also independent direct purchase orders by the building owners. In both cases, the rate of GST would be at the rate of 12% in as much as the main contractor is chargeable to 12% for the whole works contract. 5. Remarks of the Jurisdictional officer 5.1. The application was forwarded to the jurisdictional officer as specified under subsection (1) of Section 98 of the CGST Act, 2017. The jurisdictional officer submitted that as per rate Notification No. 11/2017Central Tax (Rate) dated 28.06.2017 construction services under Heading 9954 was liable to GST at the rate of 18% as per Serial No.3(ii). Subsequently by Notification No. 20/2017 Central Tax (Rate) dated 22.08.2017 the GST rate was reduced from 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions in the application. 7. Discussion and Findings 7.1. The matter was examined in detail. The application is admissible under subsection (2) of section 97 of the CGST Act. The applicant sought an advance ruling in respect of the classification and rate of GST applicable on erection and commissioning of lifts/elevators (escalators) for single residential units. 7.2. The Larger Bench of the Supreme Court in the case of Kone Elevator India Pvt. Ltd. vs State of Tamil Nadu reported in 2014 (304) E.L.T. 161 (S.C.) has held that in the case of installation of lift; after the goods are assembled and installed with skill and labour at the site, it becomes a permanent fixture of the building. Therefore, this composite supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for supply, erection and commissioning of lifts tailor-made as per customer specifications and hence the services are appropriately classifiable under SAC 995466 being the most specific description. 7.6. Having come to the conclusion that the supply, installation and commissioning of the lifts/escalators as detailed by the applicant is appropriately classifiable under SAC 995466; the rate of GST applicable on the service is to be determined. Sl.No.3(xii) of Notification No.11/2017 Central Tax (Rate) dated 28.06.2017 as amended reads as follows: SI.No. Chapter, Section or Heading Description of Service Rate (%) Condition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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