Karnataka AAR: 18% GST Rate for Erection of Elevators for Home

The Karnataka AAR held that 18% GST is relevant on erection & commissioning of lifts or escalators for domestic use.

The applicant is the owner of M/s BG Elevators and Escalators Private Limited is an enrolled private ltd company that performs trading and erection and commissioning of lifts and elevators for domestic and commercial use.

The applicant seeks advance ruling relevant to the rate of tax needed in erecting and commissioning of lifts installed for domestic use the Rate of tax Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28%. Read More urged towards the erecting and commissioning of escalators installed for domestic use.

The petitioner declares that they had learned that their competitors imposed GST on 12% upon the erection and commissioning of lifts on the fixed property for domestic use and thus furnished the immediate application.

The two judges Dr. M.P.Ravi Prasad and Mashood Ur Farooqui declare that the notification 11/2017-Central Tax (Rate) dated June 28, 2017, as changed stipulates the rate of GST (Goods and Services Tax) on the services covered under 995466 at 18%, in terms of Sl. No.3(xii). Moreover, the GST rate given does not disregard the installation place that is at the residence or at the mall or shopping complex and also disregards the proposed usage of 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 held.