tax on hvac

[sk loharuka]

gst on hvac construction contract

 

[Sadanand Bulbule]

Dear

Plz expand the query. 

Contract for the supply, installation and commissioning of HVAC as a whole unit is a supply of "works contract" defined under Section 2 [119] of the CGST Act, falling under HSN 9954 and taxable at 18% tax. Consider the CBIC Circular No. 34/8/2018-GST dated 01/03/2018.

 

[KALLESHAMURTHY MURTHY K.N.]

Sir,

Construction Service for HVAC (HSN code 995463) attracts GST @ 18%. But ITC is blocked credit u/s 17(5)(c). 

AI Summary

GST classification for HVAC works contracts requires supply as works contract with applicable GST and ITC blocked. Contracts for supply, installation and commissioning of HVAC as an integrated unit constitute a works contract under the CGST Act definition and are classifiable under the HSN framework for construction-related services, attracting the applicable GST rate; input tax credit for such construction-related HVAC services may be ineligible under the statute's blocked credit provisions, as noted in administrative guidance.