WB AAR Clarifies GST Rate on Fit-Out and Asset Hiring Services to be Taxed at 18% GST Rate
The present application has been filed under subsection (1) of section 97 of the GST Act by a company named TCG Urban Infrastructure Holdings Private Limited (Applicant) before the West Bengal Authority for Advance Ruling Goods and Services Tax, 14 Beliaghata Road, Kolkata – 700015.
The applicant is registered under the GST Act, with GSTIN 19AADCS8821M1ZS, and is located at Beta Building, Bengal Intelligent Park, Ground floor, Plot A2, M2, N2, block EP and GP, Salt Lake Electronic Complex, Salt Lake Sector V, 700091.
On January 01, 2025, the West Bengal Authority for Advance Ruling (AAR) disposed of the application of the company through order no. 18/WBAAR/24-2. The Revenue filed an appeal challenging the order, and the West Bengal AAR sent the case back to the authority for fresh consideration.
The TCG Urban Infrastructure Holdings Private Limited is a real estate development and investment company. It develops and constructs commercial buildings, gives office spaces for rent, and sells commercial properties. It also provides office interiors (fit-outs) and other facilities on rent to companies that occupy buildings owned by its subsidiaries, Bengal Intelligent Parks Private Limited (BIPPL) and BIP Developers Private Limited. In addition, it offers related consultancy services.
To understand the appropriate classification of service for hiring of fitted assets and the corresponding rate of GST to be charged on such provision of service, the company seeks an advance ruling.
Questions Asked Before West Bengal AAR:
Seeking the present West Bengal Advance Ruling, the applicant asks the following questions:
“Question 1: Whether the said service will be covered by serial no. 17(iii) of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 under SAC 997314, attracting a GST Rate of 28%, which the Applicant has been following since the inception of GST; or
Question 2: Whether the said service will be covered by serial no. 17(viii) of the Notification No. 11/2017– Central Tax (Rate) dated 28.06.2017 classified as “leasing or rental services concerning office machinery and equipment (except computers) with or without operator” under SAC 997314, attracting a GST Rate of 18% as recently held by the West Bengal Authority for Advance Ruling in the case of Sun Knowledge Private Limited vide Order No. 29/WBAAR/2023-24. Dated 31.01.2024; or
Question 3: Whether the service will be classified under SAC 998599 under the category “Support Service”, attracting a GST Rate of 18%; or
Question 4: Any other classification as the Honourable authority may deem fit.”
Answers Given by West Bengal AAR:
The West Bengal Authority for Advance Ruling, Goods and Services Tax, gave the following answers to the questions asked by the applicant:
Heading no. 9973 (Leasing or rental services, without operator) will cover the supply of services by the applicant, and they will be taxed under serial no. 17(viii) of the Notification No. 11/2017-Central Tax (Rate) issued on June 28, 2017, read with the corresponding state notification. The tax rate of 9% CGST + 9% SGST (GST 18%) will be applicable.
Citation: TCG Urban Infrastructure Holdings Private Limited (AAR West Bengal); 13/WBAAR/2025-26; 14/11/2025
Refer to the official advance ruling for complete information.
