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2019 (4) TMI 1446 - AAR - GSTClassification of supply - Rate of GST - Supply of goods or services? - activity of O & M of Fluoride control project on ESCO Model and O & M work supply of goods or supply of services - HELD THAT:- The scope of work in ESCO model requires improvement of the whole water supply system involving pump houses, pumping stations, transmission lines, switchyards, storage tanks and headwork campus. Re-modelling of pump foundation and extension of pump house, replacement of fittings/fixtures and painting of all permanent structures like pumping station building etc. are involved in the contract. Since composite supply of works contract has been specifically classified as supply of service under Schedule Il, it should be first analysed whether the contract can be classified as a works contract or not. The given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/ electrical equipment shall be involved in the execution of such contract - That Works contract in itself is a composite supply in which construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning etc are involved along with transfer or property in goods. The activity of O & M of Fluoride Control Project on ESCO Model and O & M work by the applicant is being undertaken for a Government Department. In this activity of Composite supply of goods and services if supply of goods is below 25% out of total value of supply then GST will be NIL and if more than 25% of the total value of supply then GST will be @12%.
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