Since the introduction of GST, the issue of classification of Uninterrupted Power Supply (‘UPS’) System has grappled the whole industry. UPS system comprises of two main elements, static convertor and battery. When sold separately, 18 per cent GST applies on Static Convertor and 28 per cent GST on Battery. On the other hand, when supplied in conjunction, static convertor and battery forms composite supply with static convertor as principal supply and applicable GST of 18 percent. However, GST authorities are treating supply of static convertor and battery as mixed supply and demanding GST of 28 per cent.

In this regard, we are pleased to share short video by our Associate, Ayush Agarwal in which he has discussed issue, legal provisions, correct legal position and way forward on this issue. The video is available at https://youtu.be/tb6T23_4ybA.

Trust you find this Insight and video useful ! In case of any clarifications, please feel free to contact.

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