The Chhattisgarh Bench of the Authority for Advance Rulings (AAR) has recently ruled that 18% Goods and Services Tax rate applicable to 75 Inch Interactive Flat Panel Screens used for Data Processing Purposes manufactured by BENQ.
It was also clarified by the authority comprising Sonal K Mishra and Rajiv Kumar Agrawal that the same will attract 28% if other functions exist apart from data processing.
M/s Savex Technologies Private Limited, the applicant engaged in the trading of electronic items such as projectors, LCD monitors, LCD screens and its after sales service & is also the distributor of Information Communication and Technology Products and allied services. Applicant has approached the Authority for Advance Ruling (AAR) on the following questions.
Whether their product, interactive Flat Panels (iFPs) being traded by the Applicant qualifies under Chapter heading 8471 41 90 and whether rate of tax applicable on such goods is 18% Goods and Services Tax (9% Central GST & 9% State GST) in terms of Entry No. 360 to Schedule — Ill to Notification No. 01/2017 Central Tax (Rate).
The supplier had classified the same under the heading and tax rate as mentioned above.
The applicant also submitted that the Supplier i.e., Benq India Private Limited has also obtained BIS Certification dated 27.11.2020 for the aforesaid goods under the description “Interactive Flat Panel (Automatic Data Processing Machines)” and thus are classifiable as Automatic Data Processing Machines.
It was further clarified by the applicant as to how the machine performs no other functions and how it differs from a TV.
The Authority Bench discussed in depth as to how the product sold by the applicant may be classified and observed that the applicable rate of tax in this regard is 18% GST (9% Central Goods and Services Tax + 9% State Goods and Services Tax).
It was also ruled that, in case the impugned goods are classifiable under heading other than 8471 owing to its functionality as discussed here in above, the said goods will attract rate of tax as specified in the schedules appended to Notification no. 01 /201 7-CT(Rate) dated 28.6.2017 on such supplies on the basis of description specified therein, including 28% rate of tax (14% CGST + 14% SGST).
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
