AAR: 18% GST for 75 Inch Display Engaged in Data Processing, 28% on Condition

The Chhattisgarh Bench of the Authority for Advance Rulings (AAR) has declared that the 18% Goods and Services Tax rate applies to BENQ 75-inch Interactive Flat Panel Screens utilized for Data Processing.

The authority, comprised of Sonal K Mishra and Rajiv Kumar Agrawal, further highlighted that the same will attract 28% if other tasks other than data processing exist.

Recommended: Current GST Rates on Computer & Laptops with Accessories

M/s Savex Technologies Private Limited, the applicant, is a trader of electronic items such as projectors, LCD monitors, and LCD screens, as well as a distributor of information, communication, and technology products and related services. The following questions have been submitted to the Authority for Advance Ruling (AAR) by the applicant.

Whether their product, interactive Flat Panels (iFPs) being traded by the petitioner would be counted under Chapter heading 8471 41 90 and whether the rate of tax levied 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).

Beneath the heading along with the GST tax rate as specified above the supplier would be categories.

The petitioner, the Supplier i.e., Benq India Private Limited has also received BIS Certification on the date 27.11.2020 for the mentioned goods beneath the description “Interactive Flat Panel (Automatic Data Processing Machines)” and hence would be categorized as Automatic Data Processing Machines.

The petitioner would have specified the working of the machine and its different work from the Television.

The authority bench specified the way the product sold via the petitioner might be classified and sees that the subjected tax rate is related to 18% GST (9% Central Goods and Services Tax + 9% State Goods and Services Tax).

It held that the impugned goods are categorized beneath the heading excluding 8471 due to its operation as mentioned above, the mentioned goods shall draw a tax rate mentioned in the schedules appended to Notification no 01 /201 7-CT(Rate) on 28.6.2017 on such supplies on the basis of a description mentioned therein, along with the 28% rate of tax (14% CGST + 14% SGST).