The provision of power back-up in a commercial or residential building is in the form of a service, whatever name it may be assigned- be it utility services, maintenance services or any other service. These services are covered under the Chapter 99, Heading 9972, Group 99722 and HSN Code 997221. the service is liable to tax @18%
Classification of service— The applicant has submitted that it is rendering facility management services to an IT/ITES building in Gurugram. It has installed diesel generators at its tower. To run these generators, it has to incur cost on HSD, lubricants and other maintenance services.
Separate meters are installed for each tenant for measuring electrical energy supplied by diesel generators. On the basis of individual separate meter readings on diesel generators, the billing is done for units consumed by each tenant. The rate charged per unit is on cost basis.
It is not making any profit out of this. It is purely on running cost basis. “A Diesel generator is a device that converts mechanical energy obtained from HSD into Electrical energy as output.” The said supply of Electrical energy units through diesel generators is covered under Tariff code-27160000-ElecricaI Energy- attracting NIL rate of Tax. The applicant wants to confirm as to whether the NIL rate of tax selected by it is correct.
Held that— The facilities provided by the applicant are not classified as goods rather as services. The provision of power back-up in a commercial or residential building is in the form of a service, whatever name it may be assigned- be it utility services, maintenance services or any other service. These services are covered under the Chapter 99, Heading 9972, Group 99722 and HSN Code 997221. As such, the service is liable to CGST @ 9% and SGST @9%.
The provision of power back-up in a commercial or residential building is in the form of a service, whatever name it may be assigned- be it utility services, maintenance services or any other service. These services are covered under the Chapter 99, Heading 9972, Group 99722 and HSN Code 997221. the service is liable to tax @18%
Classification of service— The applicant has submitted that it is rendering facility management services to an IT/ITES building in Gurugram. It has installed diesel generators at its tower. To run these generators, it has to incur cost on HSD, lubricants and other maintenance services.
Separate meters are installed for each tenant for measuring electrical energy supplied by diesel generators. On the basis of individual separate meter readings on diesel generators, the billing is done for units consumed by each tenant. The rate charged per unit is on cost basis.
It is not making any profit out of this. It is purely on running cost basis. “A Diesel generator is a device that converts mechanical energy obtained from HSD into Electrical energy as output.” The said supply of Electrical energy units through diesel generators is covered under Tariff code-27160000-ElecricaI Energy- attracting NIL rate of Tax. The applicant wants to confirm as to whether the NIL rate of tax selected by it is correct.
Held that— The facilities provided by the applicant are not classified as goods rather as services. The provision of power back-up in a commercial or residential building is in the form of a service, whatever name it may be assigned- be it utility services, maintenance services or any other service. These services are covered under the Chapter 99, Heading 9972, Group 99722 and HSN Code 997221. As such, the service is liable to CGST @ 9% and SGST @9%.