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2018 (11) TMI 1825 - AAR - GSTExemption from GST or not - freight charges covered by the Applicant under the contract from Power Grid Corp India without issuance of consignment note - applicability of S. No. 18 of notification No. 12/2017 Central Tax Rates dated 28-06-2017 and the corresponding S. No. 18 of Notification No. 43/ST2 dated 30-06-2017 issued by Haryana Govt - HELD THAT:- As per the advance ruling application, the fifth contract covers in its ambit, activities such as port handing of plant and machinery, loading, inland transportation and insurance for delivery at site, insurance, unloading, storage and handling at site, installation including civil works, testing and commissioning in respect of all plant and equipment supplied under first and third contracts. Hence, it is not only transportation activities which are being provided under fifth contract, but other services also, such as port handing of plant and machinery, storage and handling at site, installation including civil works, testing and commissioning as well. All such activities are being carried out by the applicant, in connection with goods covered under first and third contract. Therefore, supply of these goods and services is required to be assessed as composite supply. From definition of “composite supply” and illustration given therein, activities being performed by the applicant under fifth contract also are naturally bundled and are being supplied in conjunction with each other, as all these set of activities, such as port handing of plant and machinery, loading, inland transportation and insurance for delivery at site, insurance, unloading, storage and handling at site, installation including civil works, testing and commissioning, are all to performed in respect of all plant and equipmetns supplied under first and third contract. Thus, GST on the activities covered vide fifth contract is required to be levied by considering them as composite supply and is required to be charged at the GST rate which the principal supply, amongst such supplies, is chargeable and exemption from GST, as being claimed by the applicant in respect of freight charges, as provided in Sr.No,18 of notification No. 12/2017 Central Tax Rates dated 28-06-2017 and the corresponding S. No. 18 of Notification No. 43/ST2 dated 30-06-2017 issued by Haryana Govt., is not applicable, because transportation is not a stand-alone activity under the said contract. Rather, even the fifth contract is also riot a stand-alone contract from the other five contracts.
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