Home Case Index All Cases GST GST + AAR GST - 2021 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 325 - AAR - GSTClassification of supply - supply of goods or supply of services - composite supply or not - supply of cooking gas through pipeline from the gas banks installed at the project premises - HELD THAT:- It is a matter of fact that all the gas banks are installed at the common area of the project. Further, the ‘Agreement to sub-Lease’ clearly specifies that all central and appurtenant installations for service such as electricity, telephone, television, gas shall be included in common parts & portions of the project. It is also a matter of fact that the applicant has been entrusted by the developer for providing all sorts of facility and property management services in respect of the said residential complex and to provide such services, the applicant obtains services from two service providers namely (i) Cooliers International (India) Property Services Private Limited and (ii) Futuristic Utility Services. The applicant, provides the said services to the owners of the all apartment/flat/unit owners and issues invoices towards Common Area Maintenance (CAM, for short) Charges charging tax @ 18% leviable under the GST Act. This CAM charges inter alia includes services in respect of maintenance of gas bank, repair and maintenance of gas pipeline and other services related to supply of gas through LPG Reticulated System. Whether supply of cooking gas can be treated as a separate supply being supply of goods or it can be considered as a composite supply comprising supply of goods and supply of services both? - HELD THAT:- According to the ‘Agreement to sub-Lease’, each and every apartment owner, irrespective of the fact whether she/he will avail the pipeline gas supply or not, is required to pay a fixed amount against ‘Piped Gas Bank connection’. Further, if an apartment owner doesn’t want to avail the pipeline supply of gas, still he shall have to bear the expenses incurred towards maintenance of gas bank, repair and maintenance of pipeline through which LPG will be supplied since such expenses are included under CAM charges - It is, therefore, not clear whether an apartment owner has to enter into a separate agreement/contract with the applicant for procuring pipeline gas supply. The applicant has not furnished any documents before us regarding terms and conditions towards supply of gas through pipeline and whether the applicant has to follow any guidelines issued by the appropriate authority for supply of gas through pipeline. In the instant case, the applicant is providing facility and property management services to each and every apartment owner of the project. This service includes maintenance and repair services related to supply of cooking gas through pipeline and is also applicable to the apartment owner who is not availing the pipeline gas supply. So, when an apartment owner intends to get supply of cooking gas through pipeline, she/he will be provided the same along with the services for which she/he has already been paying to the applicant. So, supply of cooking gas through pipeline is inextricably linked with facility and property management services as provided by the applicant. It therefore follows that in spite of issuance of separate invoices as ‘GAS CHARGES BILL” for consumption of gas, supply of gas through pipeline is found to be naturally bundled with facility and property management services and are supplied in conjunction with each other. The instant supply, therefore, shall be treated as ‘composite supply’ as defined under clause (30) of section 2 of the GST Act where the principal supply is facility and management services.
|