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2024 (6) TMI 165 - AAR - GSTDetermination of GST applicability - GST would be applicable only on supervision fee or on entire amount including material and labour - time and value of supply of goods or services or both - HELD THAT - The Applicant is Electricity Distribution Company. Being expert in the area Electricity Lines are installed in their supervision where electricity lines needs to be installed to supply the electricity at the designated location on the request of customers. Where installation of lines is arranged by MVVNL on behalf of the customer the entire amount including reimbursement amount is taken for the calculation of GST and the applicant has not disputed the same - Here MVVNL is not a supplier of goods and services as per provisions of section 2 (105) of CGST Act 2017 as the work is being undertaken by the customer itself. There is no relationship between the customer and MVVNL which can be categorized as that of supplier and recipient except for the services of the supervising the whole work. In this case the ownership of the property being dislocated / shifted is vested with MVVNL the MVVNL receives money in the form of dislocation / shutting charges. The services supplied in such cases is related to an act of tolerance with respect to such immovable property and hence covered under agreeing the obligation to refrain from an act or to tolerate an act or a situation or to do an act and are classified under SAC 999794 - The work contract services in the present case is being supplied by an independent contractor and is covered under SAC 9954 it is distinct service which is being supplied by a registered person other than MVVNL. In the facts and circumstances where the value of materials and cost of execution of work for installation of electric lines are borne by the recipient of service and the applicant charges supervision fees only the value of materials and cost of installation shall not be included in the value of supply for determination of taxable value under GST and the applicant shall be liable to pay GST only on the supervision charges.
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