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2020 (2) TMI 549 - AAR - GSTSupply of services of transmission or distribution of electricity - Deposit Work undertaken by Applicant, integral part of said services or not - composite supply of services - ancillary services to the principal supply or not - exemption given under Entry No. 25 of the exemption notification - input tax credit. HELD THAT:- For a supply to be consider as a composite supply, its constituent supplies should be so integrated with each other that one is not supplied in the ordinary course of business without or independent of the other. In other words they are naturally bundled. The concept of the "Naturally Bundled", used in Section 2(30) of the CGST Act, 2017, lays emphasis on the fact that the different element in a composite supply are integral to the overall supply and if one of the element is removed the nature of supply will be affected. In view of the clarification issued under the Circular No. 34/8/2018-GST, dated 1-3-2018, issued vide F. No. 354/17/2018, it is observed that the deposit work undertaken by the applicant are not an integral part of the supply of services of transmission or distribution of electricity and the applicant is not eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017-Central Tax (Rate), dated 28-6-2017 bearing description "Transmission or distribution of electricity by an electricity transmission or distribution utility" with respect to the non-tariff charges recovered from their customers. Input tax credit - HELD THAT:- The immovable property created by the applicant does not falls under the category of "plants and machinery" therefore they are not eligible to claim Input Tax Credit.
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