The Authority of Advance Ruling (AAR) Tamil Nadu has given its judgment that Goods and Service Tax (GST) at the rate of 12% is payable on the LED stem.
M/s. lnventaa LED Lights Private Limited is the applicant in this case who is engaged in the design, manufacture and supply of LED Lights of various applications in a wide range of sizes and voltage with Fixtures and fittings where the fixtures and Fittings which are made up of Plastic, Aluminium, Steel or a combination thereof.
The applicant informed the authority that they have developed a LED Stem (Long bulb) which has a 360-degree light output and at the same time saves power up to 60% in comparison to the CFL bulb, whereas the conventional LED bulb delivers only 180-degree light output.
And their new product can get Fitted into a B22 or E27 holder. Upto 70% of the raw materials are manufactured indigenously and, around 30% were imported from China and, the manufacturing is done in-house.
The new product of the M/s. lnventaa LED Lights Private Limited is named as LED stem (long bulb) by them and, they have applied for the patent of the technology involving manufacturing of LED stem (long bulb) which has the feature of 360-degree light output.
The Applicant came to the Authority of Advance Ruling to resolve the issue of what is the applicable GST Tariff code and GST rate for the supply of patent-applied LED stem (long bulb) with fittings when both are manufactured in their factory and supplied as a single unit.
Manasa Gangotri Kata and Kulinjee Selvaan two-member bench has given their judgement that the supply of ‘LED stem (long bulb) that is outdoor lighting fixtures with LED integrated inside them, by the applicant is classifiable under CTH 94054090 and is taxable at the rate of 6% CGST vide Sl.No. 226 of Schedule-ii of Notification no 01/2017-C.T. (Rate) dated June 28, 2017, as amended and 6% SGST as per S. No. 226 of Schedule II of G O. (M.S.) No. 62 dated June 29, 2017, as amended.
With Warm Regards,