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2018 (12) TMI 844 - AAR - GSTClassification of services - Rate of GST - Composite supply of works contract - MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the Applicant - whether taxable at 12% or otherwise? - benefit of Central Tax (Rate) Notification No. 01/2018 dated 25th January 2018 - supplies are in relation to an housing project enjoying Infra status - F No 13/6/2009-INF dated 30th March 2017 of Government of India - compete installation testing and commissioning and satisfactory handing order of substation electrical works, HT & LT cabling works, DG and cabling works, street light and cabling. Held that:- The contract like the one at hand which includes Design, engineering, work laying of RCC Hume pipe/GI pipe etc. for storm waterline and construction of chambers involves more than two taxable supplies in the nature of resources, material and machinery - large number of service receivers of such bundle of services mostly expect plumbing work to be provided as a package in the ordinary course of business. In the light of above observation the plumbing contract constitute a composite supply as defined u/s 2(30) of the GST Act. Works Contract as is essentially a contract of service which may also involve supply of goods in the execution of the contract. It is basically a composite supply of both goods and services. In a general sense, a contract of works, may relate to both immovable and movable property - it can be seen that the term works contract has been restricted to contract for building, construction, fabrication, repair etc. of any immovable property only. The draft contract for plumbing work is a composite supply of works contract as defined in S. 2(119) of the GST Act. The acts to be committed by the applicant cannot be divided into two parts, namely supply of goods and services which are in fact inseparable - thus, the plumbing contract is indivisible works contract pertaining to immovable property within the scope of section 2(119) of the GST Act. Compete installation testing and commissioning and satisfactory handing order of substation electrical works, HT & LT cabling works, DG and cabling works, street light and cabling - Held that:- The applicant would be required to do various acts which includes design, supply, installation and commissioning of substation that is electrical infrastructure. This is also a turnkey project contract like plumbing contract discussed in the earlier part of this ruling - electrical contract which involves supply of taxable goods and services is a composite supply as defined u/ s 2(30) of the GST Act and the said composite supply is works contract as defined u/ 2(119) Of the CST Act. Rate of GST - MEP (Mechanical, Electrical & Plumbing Works) activities by availing the benefit of Central Tax (Rate) Notification No 01/2018 dated 25th January 2018 - taxable at 12% or not? - Held that:- The applicant has not submitted any details / evidence such as agreement entered into with a developer/ builder for the provisions Of MEP services to an affordable housing project. Therefore in the absence of detailed information in relation to housing project it is not possible for this authority to reach at definite conclusion. Ruling:- MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the applicant falls within the definition of composite supply of works contract as defined under Section 2(119) of CGST Act.
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