Last time we made supply to research institute by charging GST rate of 5% which is concessional rate for institution.
Now we have done repair of material for research institution and we have to raise GST invoice for repair charges under SAC code. What would be the GST rate for these services. Please advise.
12 July 2024
For repair services provided to a research institution, the applicable GST rate would depend on the specific nature of the repair service being provided. Generally, repair and maintenance services fall under SAC (Services Accounting Code) 998717, which covers "Repair and maintenance services of other goods." Here are the possible GST rates applicable:
1. **GST Rate of 18%**: This is the standard GST rate applicable to most repair and maintenance services, unless specified otherwise.
2. **GST Rate of 12%**: Certain specific repair services may attract a GST rate of 12%. For example, repair services for bicycles, tricycles, and similar non-mechanized vehicles fall under this category.
To determine the exact GST rate applicable to the repair of materials for a research institution, you should consider the specific nature of the repair service and cross-check it with the SAC code. Here are the steps you can follow:
- **Identify the Nature of Repair**: Determine the exact nature of the repair service being provided (e.g., repair of scientific equipment, instruments, machinery, etc.).
- **Check SAC Code**: Verify the correct SAC code for the repair service. As mentioned earlier, repair and maintenance services generally fall under SAC 998717.
- **GST Rate Application**: Once you have identified the SAC code, refer to the GST rate schedule to determine the applicable rate (typically 18% for most repair services).
Since you have previously supplied goods to the research institution at a concessional GST rate of 5%, it’s important to ensure that the repair service invoiced correctly reflects the applicable GST rate to avoid any compliance issues.
If you are still unsure about the exact GST rate applicable to your specific repair service, I recommend consulting with a GST practitioner or tax expert who can provide guidance tailored to your particular circumstances and ensure compliance with GST regulations.
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