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2019 (3) TMI 920 - AAAR - GSTClassification of supply - supply of goods or services - works contract or not - contract for Erection, Procurement and Commissioning of Solar Power Plant - HSN Classification - rate of tax - Held that:- The contract for providing the design, procurement, supply, development, testing and commissioning of the Plant which includes the supply of both goods and services is a composite supply as per the definition in the Act. There are two taxable supplies- one of goods and the other of services and they both are naturally bundled and it is natural and also a practice to expect that the contractor who will supply the goods will also supply the services alongwith it. In the business of contracts for the Solar Power Generating System, it is a practice to provide a Plant as a whole along with the supply of services. Solar Power Generating System’, whether movable property of immovable property? - Held that:- After going through the entire contract, it is concluded that the contract leads to an erection of a ‘Solar power generating system’ which is immoveable property. Therefore, merely because a schedule entry is provided for the same does not mean that the product would be classified in the same. If the transaction is treated as a ‘composite supply’, whether the Principal Supply in such case can be said to be ‘solar power generating system’ which is taxable at 5% GST? - Held that:- With reference to the question of GST rate of 5% on Principal supply of ‘Solar Power Generating System’, we have already treated the transaction as a ‘Composite supply’ and a ‘ Works contract’ falling u/s. 2(119) of the CGST Act, 2017. Para 6 of SCHEDULE II [ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES] treats ‘Works contracts’ u/s 2(119) as supply of ‘services’. In view thereof, there arises no occasion to go into the issue of’ Principal supply’.
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