28% GST leviable on Interactive Flat Panels by Acer: AAR [Read Order]

The Tamil Nadu Authority for Advance Ruling (AAR) has held that Interactive Flat Panels (IFPs) supplied by Acer India Pvt. Ltd. will attract 28 percent Goods and Services Tax (GST).

Acer India, engaged in manufacturing and trading a wide range of IT products including laptops, desktops, monitors, projectors, and digital signage, approached the AAR seeking clarity on the tax rate applicable to its interactive flat panels. The company either imports IFPs as finished goods or sources them through contract manufacturers in India.

In its application, Acer India argued that IFPs should not be treated in the same category as entertainment panels or televisions, which attract higher taxes, but should be classified under lower GST slabs, given their utility in professional and educational settings. The company contended that the devices serve as advanced collaboration tools equipped with features such as multi-touch screens, smart connectivity, and digital interaction functions.

After examining the submissions, the AAR rejected the company’s claim. The authority noted that while IFPs differ from ordinary monitors or all-in-one PCs, their functional characteristics align more closely with display panels that fall under tariff heading 85285900 of the Customs Tariff. Goods under this classification attract the highest GST slab of 28 percent.

The AAR noted that the additional features of Acer’s IFPs such as interactivity, smart connectivity, and enhanced display technology do not change the essential character of the devices as display panels.

It was observed that the features of an IFPD enumerated in the circular is not restrictive as claimed by the applicant, but throws light on the major differences between IFPD and the monitors for the purpose of classification as the rate of tax for both the products are different. Therefore, the features of IFPD listed in the circular shall not be compared with an ADP machine, as the intended purpose of ADP machine is different from IFPDs.

It also clarified that the features highlighted in government circulars are not exhaustive, but merely illustrative of why IFPs warrant distinct treatment from other computing equipment.

It was thus ruled by the authority bench of SGST Member B Susheel Kumar and CGST Member C Thiagarajan that Various models of ACER Interactive flat Panels with additional features are still classifiable under 85285900 and that the applicable rate of GST is 28%.

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