18% GST on Erection & Commissioning of Lifts or Escalators for Domestic use: AAR [Read Order]

GST - erection & commissioning of lifts - escalators - domestic use - AAR - TaxscanGST - erection & commissioning of lifts - escalators - domestic use - AAR - Taxscan

The Karnataka Authority of Advance Ruling (AAR) ruled that 18% GST is applicable on erection and commissioning of lifts or escalators for domestic use.

The applicant, M/s BG Elevators and Escalators Private Limited  is a registered private limited company engaged in trading as well as erection and commissioning of lifts and elevators for domestic as well as commercial use.

The applicant has sought advance ruling in respect of the Rate of tax required in respect of erecting and commissioning of lifts installed for domestic use the Rate of tax required and in respect of erecting and commissioning of escalators installed for domestic use.

The applicant submits that they learnt that their competitors are charging GST at the rate of  12% on the erection and commissioning of lifts on immovable property for domestic use and hence filed the instant application.

The coram of Dr. M.P.Ravi Prasad and Mashood Ur Farooqui clarified that Notification 11/2017-Central Tax (Rate) dated June 28, 2017, as amended, stipulates the rate of GST on the services covered under 995466 at 18%, in terms of Sl. No.3(xii). Further 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 lifts/escalators either for domestic use or commercial use.

“The rate of GST applicable to erection and commissioning of lifts / escalators installed for domestic use is 18%, as the said services are covered under Lift and escalator installation services, falling under SAC 995466, in terms of Sl.No. 3(xii) of the Notification No. 11/2017 (Central Tax Rate) dated 28-06-2017, as amended,” the AAR ruled.

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