A recent ruling by the Authority for Advance Rulings (AAR) in Tamil Nadu has determined the classification and applicable Goods and Services Tax (GST) rate for Interactive Flat Panels (IFPs) sold by M/s Acer India Pvt. Ltd. The applicant sought clarification on whether these IFPs should be classified under the tariff heading for Automatic Data Processing (ADP) machines, which would attract a GST rate of 18%, or under a different heading for other monitors, which would incur a 28% GST rate.
M/s Acer India Pvt. Ltd. argued that their IFPs, featuring multi-touch screens and capable of data transmission through various connectors like USB and HDMI cables, should be classified under CTH 8471 4190, similar to ADP machines. They supported their stance with a CBIC circular that outlines characteristics of Interactive Flat Panel Displays (IFPOs).
However, the AAR concluded that while the CBIC circular provides illustrative features of IFPOs, it does not restrict their classification. The authority observed that despite additional features, Acer’s IFPs are fundamentally designed for display and monitoring, not for processing data like ADP machines. As such, they should be classified under Tariff Heading 85285900, which pertains to other monitors. Consequently, the AAR ruled that these IFPs should be subjected to a 28% GST rate, rather than the 18% rate proposed by Acer.
Party: M/s Acer India Pvt. Ltd.
Facts -
- Applicant (M/s Acer India Pvt. Ltd.) sought advance ruling on classification of various Interactive Flat Panel (IFP) models.
- Contended that IFPs are distinct from monitors, closer to Automatic Data Processing (ADP) machines, and eligible for lower GST rate. Relied on CBIC Circular No. 12/2025 - Customs dated 7 April 2025 on IFPOs (Interactive Flat Panel Displays).
- Te Applicant submits that the said product has a multi touch screen panel. Data transmission takes place through the connectors such as USB cable, LAN cable, HDMI cable, etc. and post processing of the same, the said data is transmitted to the screen of the IFP. Therefore, in line with the said description, the product is clearly classifiable under CTH 8471 4190.
Issue -
- Whether Acer Interactive Flat Panels are classifiable as ADP machines/monitors attracting 18% GST, or under Tariff Heading 85285900 (other monitors) attracting 28% GST.
Order -
- The AAR observed that features of IFPOs in CBIC circular are illustrative, not restrictive. They indicate difference between IFPOs and monitors.
- Acer IFPs, though having additional features, are still designed for display/monitoring purposes; their primary use is distinct from ADP machines. Classification under Heading 85285900 (other monitors) is appropriate, as intended purpose differs from Automatic Data Processing machines.
- Accordingly, applicable GST rate is 28%, not 18% as claimed by the applicant.
