In re S & G Engineers (GST AAR Kerala)
In the recent ruling involving M/s. S & G Engineers, the Authority for Advance Ruling (AAR) in Kerala addressed critical issues related to the classification of services and the applicable tax rates under the Central Goods and Services Tax (CGST) Act. The firm, engaged in providing works contract services for the application of polymer protective coating on bridges, sought clarity on the appropriate Service Accounting Code (SAC) and tax implications under Notifications 11/2017 and 12/2017.
Detailed Analysis
1. Service Classification and SAC Code
The applicant, M/s. S & G Engineers, is involved in applying polymer protective coatings to bridges as part of their works contract services. They requested the AAR to confirm the correct SAC code for this service. The AAR determined that the relevant SAC code is 995473, which falls under the category of “painting services.” This classification includes services related to:
- Painting services for building interiors and exteriors
- Coatings and lacquer application
- Protection and painting of engineering structures, including bridges
The ruling establishes that the polymer coating services provided by the applicant are classified under the SAC 995473 due to their nature of improving and protecting immovable property, which aligns with the definition of works contracts under Section 2(119) of the CGST Act.
