TMI Blog2018 (8) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... made under the contract? Held that:- On a reading of the scope of work, it is clear that the work involves both supply of goods and supply of services, which are naturally bundled. Accordingly, the under this agreement, the applicant is providing a composite supply within the meaning of Section 2 of the CGST Act, 2017 - Perusal of the agreements that the applicant has entered into with RUMS shows that the scope of work in all the three agreements are identical, accordingly, all the three agreements shall have the same classification for the purpose of taxation under the GST Laws - applicability of SI.No. 6 of Schedule II of the CGST Act, 2017 and MPGST Act, 2017, to the work being done by the applicant. The work being done by the applicant being a Composite Supply and Works Contract u/s 2 is clearly a supply of service. Ruling:- The HSN Code for the supply of composite service in the nature of Works Contract under the all the three agreements entered into with RUMS, shall be 9954/995423 - The rate of CGST on the supply being made under the contract shall be according to Notification No. 11/2017 - Central Tax (Rates) - The rate of MPGST on the supply being made under the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot - III) under World Bank Financing. 3.4 Under the agreements with the RUMS, the scope of work involves supply of all Transmission Line material and sub-station Equipments (excluding Power Transformers, it s associated accessories and oil), Station Transformers, Fabricated, Galvanized sub station Structures and other materials, with related civil works, erection work and testing/commissioning for construction of new 33/220 kV pooling sub-stations, transmission lines and feeder bay work on total turnkey basis. The scope of the contract also involves construction of 33/220kV pooling sub-station, Transmission Lines and Feeder Bay Work. 3.5 The contract allotted to Vihan Enterprises is for a work which is part of evacuation infrastructure being exclusively for Solar Power, for a Solar Park and is being developed by Solar Project Park Developer. 3.6 The contracts in question were entered into by RUMS and the applicant prior to the introduction of GST. The rates quoted by the applicant for the contract included elements of MP VAT, CST, Entry Tax, Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of goods as well as services. Also, as per the provisions of the CGST Act, this work is in the nature of a Works Contract and is classifiable as supply of service. In support of this contention, the applicant refers to SI.No. 6 of Schedule II to the CGST Act, 2017. 6.3 Regarding the applicable rate of GST, the applicant submits that the rate of GST on Works Contract on the nature of work being done for RUMS shall be taken from Notification for Services, i.e. Notification No. 11/2017 - Central Tax (Rates), para 3, clause (ii) for CGST and that the rate of GST comes to 18%. 6.4 We have perused the contents of the agreement between the applicant and RUMS, more specifically the scope of work in the agreement at para 4 of the agreement. On a reading of the scope of work, it is clear that the work involves both supply of goods and supply of services, which are naturally bundled. Accordingly, the under this agreement, the applicant is providing a composite supply within the meaning of Section 2 of the CGST Act, 2017. 6.5 The agreement involves construction of Pooling Sub-station on Turnkey Basis and falls under the definition of a Works Contract within the meaning of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, subheading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedules .................. The entry at SI. No. 234 is as under: S. No. Chapter/ Heading/ Sub-heading/ Tariff item Description of Goods 234. 84 or 85 Following renewable energy devices Et parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants/devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants 6.8 It is seen that Notification No. 11/2017 - Central Tax (Rates) and corresponding notification under MPGST has prescribed 2.5% as CGST, meaning 5% GST on the following works - a. Under para3, clause (vii) for Composite supply of works contract as defined in clause of section 2 of the Central Goods Services Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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