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If an A/C dealer , doing business , both installation & Selling of A/C , but the business consist 30% of services (maintanance & installation ) and 70% consist of supply of A/C(Goods),how charge GST for the same,we can charge one GST rate ie.18%(Services) or 28% (Goods)

Balamurali Unnithan M S

CA Inter

★ 3K+

25-Mar-21 22:06

294

Answers (2)

Air conditioners are considered as a luxury item and are hence charged at 28%. Supply of air conditioning with installation is a composite supply. The principal supply is of Air conditioning units and the entire contract is taxable @ 28%. But if the supply is only on service then the GST rate would be service rate