GST on Cold Storage Refrigeration Machinery

[Asked by Guest]

Dear Sir

We 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.

AI Summary

GST classification of refrigeration machinery may determine whether supply is goods or works contract, affecting applicable tax treatment.
Classification of refrigeration and cold storage machinery under GST hinges on whether supplies fall under HSN classification for refrigerating equipment or qualify as works contracts; the revised definition of works contract focuses on immovable property and may exclude certain erection and commissioning activities that were covered pre GST. Recent notifications apply reduced rates in specific contexts, notably government works contracts, creating uncertainty for turnkey versus goods only supplies. Suppliers are advised to seek GST Council clarification and to document transaction nature, installation extent, and HSN classification when determining tax treatment.