Classification of service— In the instant case, the applicant is a partnership firm and its main activity is supply, erection, commissioning and installation of elevators in various multistoried commercial and residential buildings.

The applicant has requested an advance ruling on the following:

1. Classification of service provided

2. Applicability of rate notification 11/2017 Central Tax (Rate)

The applicant submits that the supply of elevators is a product tailor-made according to the specification of their customers. The product elevator falls under Heading 8428 and is charged to GST at the rate of 18%. 

In most cases, the contract involves supply, erection, commissioning and installation of elevators. As this falls under the purview of works contract services falling under Heading 9954; GST at the rate of 18% is charged. Recently there is an increased demand for elevators in independent villas. As per Notification No. 11/2017, a GST rate of 12% only is payable for the composite supply of works contract service in such cases when it relates to single residential units.

Held that— The service provided by the applicant is appropriately classifiable under SAC 995466 - Installation services of lifts, escalators, travelators (moving sidewalks) etc. 

The service provided by the applicant as detailed in the application is liable to GST at the rate of 18% as per entry at Sl.No.3(xii) of Notification No.11/2017 Central Tax (Rate) dated 28-06-2017 as amended.