Goods and Services Tax – Started By: – Ayush Kathuria – Dated:- 12-9-2017 Last Replied Date:- 3-10-2017 – Dear SirWe are from Refrigeration industry and we supply machinery for cold storage.Can you please let us know that according to new notification for works contracts, the new GST rate applicable on the refrigeration machinery and its installation will be 12% or not?Thanks in Advance. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Sl. No. 120 of Schedule IV of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8415 are classifiable under heading 8418 attracting g
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vable property such contract. Earlier installation of machinery was part of definition of works contract service. Now emphasis is laid on immovable property.. Regarding reduced rate from 18 to 12% is for those who provide works contract service to Govt. Departments. Your chapter is NOT closed here. Now here dispute is 'what is immovable property?' Machinery embedded to earth is also immovable property as per various case laws pertaining pre-GST era.. You can raise the issue before GST Council and you may get benefit. – Reply By Ayush Kathuria – The Reply = Thank you Sethi Ji,Is it for govt. Jobs only??There is no mentioning of govt works contract with the cold storage part of the notification, it is mentioned with the other parts o
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additions and alterations to abandoned or damaged structures on land that are required to make them workable; (iii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise. In pre-GST era your activity was covered under this notification. Now definition of 'works contract ' has changed. More emphasis is laid on construction of original works. Even then in view of the language of the above Notification Serial No.V(e), you can get the benefit of word, Infrastructure for GST rate of 12 %. It is stretching. The issue is not litigation-free. Better option is to seek clarification from GST Council. You must make efforts. Chances are bright. – Reply By Ayush Kathuria – The
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