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2021 (8) TMI 671 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKALevy of GST - Composite supply or Principal supply - street lighting activity undertaken under the Energy Performance Contract dated 1st March 2019 (which involves supply of various goods and rendition of various services) - supply of luminaires, without which there can be no energy conservation, and which is the primary deliverables, constituting approximately 70% of the total project cost, can be construed as the principal supply - applicable rate of GST - benefit of exemption under Entry 3A of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, as amended - time of supply of luminaires - Explanation 1 to Section 12(2) of the CGST / KGST Act - valuation of taxable supply - payments are to be received based on energy savings. HELD THAT:- The Applicant entered into an Energy Performance Contract dated 01.03.2019 with BBMP to install and implement energy conservation measures and also to operate and maintain the project Public Lighting Network, in the city of Bengaluru, for a period of ten years, through a special purpose vehicle incorporated by the consortium bidder. The Applicant is primarily required to supply LED luminaires so as to replace the existing luminaries as part of the said project, dimming of switching point LUX during designated hours, and also to undertake measures to achieve guaranteed energy savings - the applicant contends that their supply includes LED luminaries etc., and operation & maintenance of the same and thus the said supply qualifies to be a composite supply wherein the supply of LED luminaries becomes principal supply and hence the rate of GST would be the rate of tax applicable to supply of LED luminaries. Further the time of supply is date of invoice. The street lighting activity undertaken under the Energy Performance Contract dated 1st March 2019 (which involves supply of various goods and rendition of various services), is to be considered as a Composite Supply under the CGST / KGST Act 2017, where the principal supply is the service, classified under SAC 999112 - applicable rate of GST on supply made under this contract is 18% as per entry SI.No.29 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. O & M of the installed equipments would constitute the principal supply and the applicable rate of GST on the said supply - Applicant is not entitled to the benefit of exemption under Entry 3A of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, as amended - The time of supply of luminaries is not relevant as the impugned transaction is held to be a supply of service - The value of the taxable supply includes all the amounts received from BBMP pursuant to the contract dated 01.03.2019.
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