Roof mounted air conditioning units for Railway passenger coaches are subject to 28% goods and services tax (GST), the appellate authority for advance rulings (AAAR) has ruled. The ruling is based on the classification of the product under HS-code heading of 8415 (which is subject to 28%) instead of heading 8607 (which is subject to 18%).
Entry 8607 covers parts of railway locomotives or rolling stock and 8415 is devoted to classification of air conditioning machines.
Source: Business Standard
