Maintenance, Repair and installation under GST

Dear Colleagues before going to subject we have to refer the meaning of the below words under GST Scenario.

Meaning of Repairs:

The meaning of Repairs has not defined in the GST Law,2017. The TERM Repairs means :-

(a) To restore by replacing a part or putting together what is torm r broken, fix a part,

(b) To restore to a sound or healthy state,

(c) To make repair for becoming good for running / condition for use,

(d) Work of maintenance, decoration or restoration.

The meaning repair : Meaning of “ repair “ will depend upon the context. With reference to Income Tax Law it has been held that repairs are in contra-distinction to renewal or restoration, and also that repair and renew re not words expressive of a clear contract, repair always involves renewal of a part or replacement of subsidiary pars of a whole.

Meaning of Maintenance: The word Maintenance means: Preserve or provide for the preservation of a building, machine, road etc., in good condition. To keeping in working condition or order. It is nowhere provided that maintenance will only replacement of defective items occasionally, what maintenance is depends upon an item and its use. It may be on regular basis.

Maintenance vs. repairs: Maintenance is to keep a machine, building etc., in a good condition by periodically checking and servicing or repairing, Whie repair is a one-time activity, maintenance is a continuous processes of which repairing may be incidental or ancillary.

A. Services of repair and maintenance of movable goods taxable under GST (Services Accounting Code 9987)

1. Maintenance and repair services of fabricated metal products (except machinery and equipment)

This service includes maintenance and repair services of industrial boilers, steam generations, auxiliary plant for use with steam generators, condensers, economizers, super heaters, steam collectors and accumulators, nuclear reactors (Boiler equipment only), steam generators, boiler equipment or various industrial systems of pipe work, shopping carts, materials handling equipment etc, for institutions, parts of marine or power boilers, repair of metal tanks, reservoirs and containers, repair of steel shipping drums and mobile welding repair. The Service accounting Code of this services is 998711 as per GST law,2017.

2. Maintenance and repair services of office and accounting machinery

This services includes maintenance and repair services of office and accounting machinery and equipment including photocopying machines, calculating machines typewriters and does not include work involving electrical wiring. The Service accounting Code of this services is 998712 as per GST law,2017.

3. Maintenance and repair services of computers and peripheral equipment

This service includes maintenance and repair services of computers and computing machinery and peripheral equipment, such as desktop computers, laptop computers, hand-held computers (PDA’s) dedicated computer terminals, computer servers, magnetic disk drivers, flash drivers, flash drivers and other storage devices, optical disk drivers (CD-RW,CD-ROM, DVD-ROM, DVD-RW), printers, monitors, keyboards, internal and external computer modems, scanners, including bar code scanners, sart card readers, virtual reality helmets, computer projectors and computer terminals like automatic teller machines (ATM’s), point of sale (POS) terminals not mechanically operated. The Service accounting Code of this services is 998713 as per GST law,2017.

4. Maintenance and repair of transport machinery and equipment

This services includes

(a) maintenance and repair services of motor vehicles like cars, trucks, vans and buses involving engine overhaul, motor tune-up, fuel system repair and adjustment, steering gear repair and adjustment, suspension repair, brake repair and adjustment transmission repair and adjustment, exhaust system repair, cooling system repair including water hose replacement and other maintenance and repair,

(b) Scheduled factory recommended and preventative maintenance inspection services

(c) Electrical system repair and battery charging services for motor cars,

(d) Puncture repair services, wheel adjustment and balancing for motor cars,

(e ) Repair of inner tubes for car, truck and bus tyres body repair and similar services for motor vehicles, involving door and lock repair, bumper straightening and repair, repainting, collision repair, window screen and window replacement and other automobiles body repair,

(f) Cleaning and routine maintenance services, such as vehicle laundry car wash services, undersealing, polishing and waxing services, automobile emergency, road services,, motorcycle maintenance and repair and motorcycle body repair services including specialized breakdown services for motorcycles, maintenance and repair services for trailers and other motor vehicles n.e.e.c. including motor homes, travel trailers and campers including repairs to defective parts, body repairs etc.

(g) Scheduled, factory recommended and preventative maintenance services and maintenance and repair of the living accommodation of motor homes, travel trailers and campers maintenance and repair services of ships and floating platforms and structures, pleasure and sporting boats, railway ad tramway locomotives and rolling stock and aircraft and aircraft engines etc.,. The Service accounting Code of this services is 998714 as per GST law,2017.

5. Maintenance and repair services of electrical household appliances

This services includes maintenance and repair services for electrical household appliances refrigerators and freezers, dish washing machines, cloths washing and drying machines of the household type. Domestic electrical cooking and heating equipment, vacuum cleaners and other small domestic appliances and other home and garden equipment.. The Service accounting Code of this services is 998715 as per GST law,2017.

6. Maintenance and repair services of telecommunication and equipment and apparatus

This services includes maintenance and repair services of televisions transmitters, radio transmitters, wired and wireless telephones pagers and fix machines including consumer electronic goods like television, radio receivers, video cassette recorders (VCR),CD players, household type video cameras.. The Service accounting Code of this services is 998716 as per GST law,2017.

7. Maintenance and repair service so f commercial and industrial machinery

These services maintenance and repair services of engines and turbines (except aircraft, vehicle ad cycle engines), pumps and compressors, taps and valves, furnnaces and furnace burners, lifting and handling equipment, non-domestic cooling and ventilation equipment,agricultural and forestry machinery, machine tools, machinery for metallurgy, machinery for mining, quarrying and construction, machinery for food, beverage and tobacco processing, machinery for textiles apparel and leather production, machinery for paper and paperboard production, weapons ad weapons systems, agricultural, forestry and garden tractors and lawn movers, other general purpose machinery and special purpose machinery etc.,. The Service accounting Code of this services is 998717 as per GST law,2017.

8. Maintenance and repair services of elevators and escalators

hese services are maintenance and repair services of elevators (Lifts), goods lifts, escalators and moving pavements.. The Service accounting Code of this services is 998718 as per GST law,2017.

9. Maintenance and repair services of other machinery and equipment

These services are Maintenance ad repair services of medical, precision and optical instruments like irradiation, electro medical and electrotherapeutic equipment such as magnate, resonance imaging equipment, medical ultrasound equipment, pacemakers, hearing aids, electrocardiographs, electro medical endoscopic equipment, irradiation apparatus, orthopedic and prosthetic devices, instruments and apparatus for measuring, checking testing and navigating and other purposes such as aircraft engine instruments, automotive emissions testing equipment, meteorological instruments physical electrical and chemical properties testing and inspection equipment, surveying instruments, radiation detection and monitoring instruments, professional photographic, cinematographic and optical instruments.

Repair, maintenance and rewinding services of electric motors, generators and transforms, maintenance and repair services of electricity distribution and control apparatus maintenance and repair services of other electrical equipment n.e.c, repair of fishing nets also mending, ropes, riggings, canvas and tarps, fertilizer and chemical storage bags, repair or reconditioning of wooden pallets, shipping drums or barrels, and similar items, repair of pinball machines and other coin-operated games etc.,. The Service accounting Code of this services is 998719 as per GST law,2017.

10. Repair services of footwear and leather goods

This services includes specialized repair services of foot wear, luggage and handbags etc.,. The Service accounting Code of this services is 998721 as per GST law,2017.

11. Repair services of watches, clocks and jewelry 

This services includes repair and alteration services for watches, clocks and jeweler etc.,. The Service accounting Code of this services is 998722 as per GST law,2017.

12. Repairs services of garments and household textiles

This services includes invisible mending, repair or renovation of used textiles garments etc.,. The Service accounting Code of this services is 998723 as per GST law,2017.

13. Repair services of furniture

This services includes reupholstering, refinishing, repairing and restoring of furniture and home furnishings etc., The Service accounting Code of this services is 998724 as per GST law,2017.

14. Repair services of bicycle

This services treated as supply services as “ repair services of bicycle. The Service accounting Code of this services is 998725 as per GST law,2017.

15. Maintenance and repairs of musical instruments

This services includes maintenance and repair services of musical instruments, piano-tuning services and tunning services for other musical instruments restoring of organs and other historical musical instruments etc., The Service accounting Code of this services is 998726 as per GST law,2017.

16. Repair services for photographic equipment and cameras

This services treated as supply of services of photographic equipment and cameras. The Service accounting Code of this services is 998727 as per GST law,2017.

17. Maintenance and repair services of other goods n.e.c.

These services are treated as supply of repair services for household articles and equipment, not elsewhere classified e.g. articles for lighting and other personal and household goods, repair services for articles for sport and camping, while-you-want services such as cutting of keys, fittings f heels ad plastic coating of identity cards etc., The Service accounting Code of this services is 998729 as per GST law,2017.

18. Installation services of fabricated metal products except machinery and equipment

This services includes installation of fabricated metal products such as reservoirs, tanks, steam generations etc., The Service accounting Code of this services is 998731 as per GST law,2017.

19. Installation services of industrial, manufacturing and service industry machinery and equipment

This services includes installation of machinery used in agricultural such as milking machines, machinery used I mining such as machinery for sorting, separating, washing or crushing of stone and ores, machinery used in manufacturing such as machinery for food production, textile production, paper production, plastic and rubber production, machinery for working on wood or metals and installation of industrial process control equipment, machinery used in service industries, such as machinery for restaurants and machinery and equipment for retail stores(except cash registers) etc., The Service accounting Code of this services is 998732 as per GST law,2017.

20. Installation services of office and accounting machinery and computers

These services are installation of computer hardware of mainframe and similar computers, personal computers and peripheral equipment and software cash ledgers, point-of sale (POS) terminals ATM’s and ticket issuing machines but not include installation of telecommunication and electrical wiring etc., The Service accounting Code of this services is 998733 as per GST law,2017.

21. Installation services of radio, television and communication equipment and apparatus

These services treated as supply of service of television and radio transmitters, telephone sets, video and sound recording apparatus. The Service accounting Code of this services is 998734 as per GST law,2017.

22. Installation services of professional medical machinery and equipment and precision and optical instruments

These services are classified as supply of services of installation services of E-ray machines, electro-diagnostic apparatus, sterilizers cinematographic projectors, binoculars and telescopes etc., The Service accounting Code of this services is 998735 as per GST law,2017.

23. Installation services of electrical machinery and apparatus n.e.c.

This services includes installation of electric motor generators and transformers and electrical machinery not elsewhere classified. The Service accounting Code of this services is 998736 as per GST law,2017.

24. Installation services of other goods n.e.c.

This services includes installation of home theatre system and other consumer electronics, household goods and goods not elsewhere classified. The Service accounting Code of this services is 998739as per GST law,2017.

B. Rate of Tax on above Services of repair and maintenance of movable goods under GST

(1). GST Rate is @5% without Input tax credit. It may be noted that in these cases, liability shall be discharged by the e-commerce operator under Section 9 (5) of the GST Law,2017 as deemed supplier.

(2). Other maintenance, repair and installation (except construction) services are taxable @18% with Input Tax Credit.

C. Input Tax Credit on Services of repair and maintenance of movable goods

Input Tax Credit is available, unless used in providing of exempt services. Input Tax Credit shall be determined in accordance with Rule 42/43 of the GST Rues, based on taxable and exempted turnover.

D. Requirement of Registration for those providing Services of repair and maintenance of movable goods

Liable for registration as per Sec.22 and 24 of the GST Act,2017. If providing exempted services – Not liable for registration under Section 23 of the GST Act,2017.

Benefit of threshold limit specified under Section 22 of the GST Act is available subject to compulsory registration as per Sec.24 of the GST Act,2017.

E. Example for aggregate turnover:

(i) If any taxable person (PAN Based) is having business turnover Rs.15 Lakhs and Rs.6 lakhs rental income on immovable property liable to to take GST registration.

(ii) If any taxable person ( PAN Based)is having tax business turnover Rs 13 Lakhs and Rs.6Lakhs rental income on immovable property not require to take registration (Rs.13 plus Rs. 6 lakhs = 19 Lakhs,no obligation to take registration.

(iii) Is any taxable person (PAN Based) is having Rs.25 Lakhs business turnover and such business in “Individual Status “ as per Individual PAN Based he has to take registration for such business and income from immovable property belongs to (HUF PAN BASED) and turnover on immovable property of Rs.6 lakhs, there is no obligation to take GST registration under HUF capacity.