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2022 (3) TMI 1145 - AAAR - GSTClassification of supply - composite supply of services or mixed supply - services for a “Single consolidated Rate” as a package - naturally bundled services or not - applicable HSN code and corresponding GST Rate for such bundle of services - eligibility of Input Tax Credit - GST paid on Commercial vehicles and Repair & maintenance cost of such vehicles used for transportation of goods/containers - ITC on inward supply from CFS/Port/Labour contractor etc. related to such packaged outward supply - refund of GST on outward supply invoices. Whether the bundle of services to be provided by the appellant for a single consolidated price would amount to provision of ‘Composite Supply’ or ‘Mixed Supply’ under the provisions of the CGST Act, 2017 and GGST Act, 2017? - HELD THAT:- The appellant intends to provide bundle of services in conjunction with each other for a single rate i.e. per container rate. The rate would vary depending upon the locations and price of diesel. However, it is not the case that the appellant would charge separately for different constituent services included in the bundle - It can be seen that the services provided by a Goods Transport Agency (GTA) by way of transport of Rice in goods carriage attracts Nil rate of GST; whereas, all other services like Clearing & Forwarding, Labour Supply for loading & unloading, obtaining Customs related certificates and allied/support services attract 18% GST. As the appellant intends to supply all these services as a bundle for a single consolidated rate, supply of such bundled services would be either ‘composite supply’ or ‘mixed supply’, as defined under the provisions of Section 2(30) and Section 2(74), respectively, of the CGST Act, 2017. To consider any supply of service as mixed supply, there should be two or more individual supplies or any combination thereof, made in conjunction with each other for a single price where such supply does not constitute a composite supply. It is found that all the requirements of ‘mixed supply’ fulfil in this case. It is clear that there is two or more individual supply of services in this case, which can be supplied separately, but the appellant intends to make such supplies as a combination or in conjunction with each other for a single price. This supply does not constitute a composite supply - thus, the proposed supply of bundled services for a single price would be treated as ‘mixed supply’ under the provisions of CGST/GGST Acts. Rate of GST on such mixed supply - HELD THAT:- It is very clear that such mixed supply would be treated as supply of that particular supply which attracts the highest rate of tax and thus, would attract the highest rate on the value i.e. single price of the entire bundle of mixed supply. In the present case, the highest rate attracted is 18% IGST or 9% CGST & 9% SGST for all services other than the service of transportation of Rice by a Goods Transport Agency, which attracts Nil rate of GST. Therefore, we are of the view that the entire bundle of services provided as a mixed supply would attract 18% rate. The appellant is also of the view that the entire bundle of services would be taxed at 18%. Classification / HSN of the mixed supply - HELD THAT:- In view of provisions of Section 8(b), the mixed supply would be treated as supply of that particular supply which attracts the highest rate of tax. In this case, there is no single supply which attracts the highest rate of 18%; but there are more than one supplies which attract the highest rate of 18%. In order to determine a particular supply for the purpose of classification of mixed supply in present case, we felt that the predominant supply among the supplies attracting the highest rate can be considered - the mixed supply intended to be provided by the appellant would be classifiable under HSN / Service Code (Tariff) 996719 with description as ‘Other cargo and baggage handling services’, which attracts 18% rate. Whether the appellant would be able to avail Input Tax Credit (ITC)? - HELD THAT:- In this case, the appellant has chosen to provide various services in conjunction of each other for a single price and such services are to be treated as mixed supply, as held by us. The single price to be charged by the appellant attracts the highest rate of 18% and the said single price includes the value of transportation of rice. So, there should be no question of denying ITC merely on the ground that one of the constituent service of mixed supply attracts Nil rate of tax, if provided separately. Whether the exporter client would be eligible to claim refund of GST paid by appellant on their outward supply? - HELD THAT:- This question is not related to appellant, but it is related to the exporter, who has not filed the application for Advance Ruling before GAAR or appeal. The appellant is not entitled to raise this question as to whether their exporter client shall be eligible to claim refund of GST paid by them or not.
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