2022 (6) TMI 194 - GST

Classification of services - rate of GST - composite supply of services - provision of services provided to Shahjahanpur Nagar Nigam (Local Authority) - services of electrical, lighting, earthing, fixation of junction boxes, poles and cantilevers, cabling infrastructure, design, supply, installation, testing and commissioning of various intelligent traffic management system - correct HSN / SAC code - HELD THAT:- The subject Contract Agreement, as enumerated in the brief facts, is a Works Contract Agreement, involving supply of goods and services for implementation of the Project. Vide Schedule II(6)(a) CGST Act, Supply of Works Contract shall be treated as a supply of service. We find that the service recipient is Shahjahanpur Nagar Nigam, Uttar Pradesh which is a local authority. Thus, the subject Supply is covered vide Sr no 3(vi)(a) of Notification 8/2017-Integrated Tax (R) dated 28-6-17 at Tariff 9954 and liable to 12% IGST rate. It is found that this Integrated Tax Notification comes into play in subject matter as the supply is Inter State Supply.

M/s Amnex's submission to take into account Notification 24/2017- CT(R) dated 21-9-17, as this Notification pertains to Intra state supply, is dismissed.

HSN/ SAC Code of Subject Supply - HELD THAT:- The subject ITMS project is an original works involving both installation, commissioning and maintenance. It is found that Tariff 9954, as mentioned in previous para, is reflected at the said sr. no 3(vi)(a) of Notification 8/2017-IT(R). On reference of SAC 995468: Other installation services n.e.c., it is found that the said SAC description encompasses the ITMS project, which is an original works installation and note that SAC 995468 occurs last in the numerical order of the of Tariff subheading 9954. In this backdrop and for the reason that the subject supply is made to a local authority and the rate being 12% IGST as per said sr no 3(vi)(a) to the said Notification and that Tariff 9954 is reflected at the said sr no 3(vi)(a), it is apt to consider SAC 995468 for the subject works contract, without delving further.