The Telangana Authority for Advance Ruling ( TAAR ) has held that rental/leasing charges for industrial equipment provided with operators falling under HSN Codes: 84151090 shall attract 28% Goods and Service Tax.
The applicant Ventair Engineers, Manufacture of machinery and equipment and is primarily engaged in the Manufacture of refrigerating or freezing equipment for industrial use. They are providing Industrial Equipment falling under HSN Codes: 84151090 on Rent/Leasing with Operators and are charging GST tax at the same rate as applicable for such new equipment sales according to equipment’s HSN code which is provided on Rent/Lease.
The applicant has sought an advance ruling in respect of Applicability of GST Tax Rate on Rental / Leasing Charges for Industrial Equipments provided with operators falling under HSN Codes: 84151090.
R.T.R.N. Bhan Sing on behalf of the applicant Objected that tax rate on Equipment ( HSN Code: 84151090 ) Rent/Leasing with Operator as 18% and not according to the GST tax rate of 28% applicable on sale of new equipment according to the HSN Code: 84151090.
The two member bench of Authority of Advance Ruling comprising S.V. Kasi Visweswara Rao ( Additional Commissioner commercial Taxes ) and Sahil Inamdar, I.R.S ( Additional Commissioner Custom & Indirect Taxes ) observed that rental/leasing charges for industrial equipment provided with operators falling under HSN Codes:84151090 shall attract 28% Goods and Service Tax.
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