Home Case Index All Cases GST GST + AAR GST - 2023 (12) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 890 - AUTHORITY FOR ADVANCE RULING, CHHATTISGARHClassification of supply of services - composite supply with principal supply of goods under the Third Contract - supply made by the Applicant under Fifth Contract - supply of services of transportation, freight and insurance under the ‘Fifth Contract’ provided for the goods supplied - Business Support Services or not. HELD THAT:- Having arrived at the considered conclusion that the instant activity of the applicant of construction, erection and commissioning of the said±800 KV, 6000 MW HVDC terminals at Raigarh, Chhattisgarh from Raigarh which includes the services of transportation, insurance and freight, is a composite works contract service classifiable under construction services falling under SAC 9954, attracting GST @18%, there are no reason to discuss the alternate opinion expressed by the applicant of the said service being in the nature of business support services - there exist no grounds whatsoever, in the case in hand warranting exemption as specified under SI. No. 18 of the Notification No. 12/2017-CT (Rate) dated 28.06.2017, which exclusively covers services by way of transportation of goods. Supply of goods under the Third Contract being the principal supply - HELD THAT:- Section 7(1 A) of the CGST Act, 2017 read with para 6 (a) of Schedule II to the CGST Act, 2017 stipulates that composite works contracts as defined in section 2(119) of the CGST Act, 2017 shall be treated as supply of services. Thus, when the CGST Act, 2017 itself classifies the instant supply of composite supply of works contract as "supply of service", there exist no reason to identify the "principal supply" in the instant transaction, more so when Notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended prescribes the applicable tax rate in such work contract services. As the supply of services made by the applicant under Fifth Contract relating to construction, erection, civil works, testing, commissioning etc. of the said ±800 KV, 6000 MW HVDC terminals at Raigarh, Chhattisgarh which includes the services of transportation, freight, and insurance, has been held to be a composite supply of Works contract, the alternate suggestion put forth by the applicant of the same being Business Support Service is not taken up for decision.
|