The Tamil Nadu Authority of Advance Ruling (AAR) held that 12% Goods and Service Tax (GST) is payable on the LED stem.
The applicant, M/s. lnventaa LED Lights Private Limited is engaged in the design, manufacture and supply of LED Lights of various applications in wide range of sizes and voltage with Fixtures and fittings where the fixtures and Fittings are made up of Plastic, Aluminium, Steel or a combination thereof.
The applicant has stated that they have developed a LED Stem (Long bulb) which has a 360-degree light output and at the same time saves power up to 60% in comparison to the CFL bulb, whereas the conventional LED bulb delivers only 180-degree light output.
It can be Fitted into a B22 or E27 holder. 70% of the raw materials are manufactured indigenously and 30% are imported from China and the manufacturing is done in-house.
The applicant has named the product as LED stem (long bulb) and has applied for the patent of the technology involving manufacturing of LED stem (long bulb) which has the feature of 360-degree light output.
The applicant sought the advance ruling on the issue of what is the applicable GST Tariff code and GST rate for the supply of patent-applied LED stem (long bulb) with fittings when both are manufactured in the applicant’s factory and supplied as a single unit.
The two-member bench of Manasa Gangotri Kata and Kulinjee Selvaan ruled that the supply of ‘LED stem (long bulb) i.e. outdoor lighting fixtures with LED integrated inside them, by the applicant is classifiable under CTH 94054090 and is taxable at the rate of 6% CGST vide Sl.No. 226 of Schedule-ii of Notification no 01/2017-C.T. (Rate) dated June 28, 2017 as amended and 6% SGST as per S. No. 226 of Schedule II of G O. (M.S.) No. 62 dated June 29, 2017 as amended.
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