Delhi High Court to Decide GST Classification of Railway AC Units : Will it Attract 28% or 18%?

The Delhi High Court is set to determine whether roof-mounted air conditioners (RMPUs) for trains should attract 18% or 28% GST.

StesaLIT Limited challenged a 2024 Finance Ministry circular classifying RMPUs under HSN 8415 (28%) instead of HSN 8607 (18%).

The company cited advance rulings from Uttar Pradesh, Madhya Pradesh, and Himachal Pradesh favoring HSN 8607, arguing that RMPUs are custom-designed for Indian Railways.

They contended the circular oversteps the Adjudicating Authority’s jurisdiction. A bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta listed the matter for May 9 and restrained final orders until further hearing. (Ms Stesalit Limited & Anr v. Union Of India & Ors.)