Case Law Details
In re Nikhil Comforts (GST AAAR Maharashtra)
The Maharashtra Appellate Authority for Advance Ruling while confirming the order of the Maharashtra Advance Ruling Authority held that the contract in the impugned case is though a composite supply not for immovable property, and therefore does not fall under the definition of ‘works contract’. The principal supply in the case is of Air conditioning units and the entire contract is taxable @ 28%.
The supply of goods and services are conjoint to each other and inter dependent. Moreover, it is an established practice to supply air conditioner units and also provide the installation and therefore it can be construed as naturally bundled and therefore a composite supply, where, needless to say the principal supply is that of goods,which is the air conditioner units. Air Conditioners units fall under Chapter 8415 and are taxable @ 28% and are covered under Schedule IV, Sr no 119 of notification No 1/2017 (CV.T rate) dated 28/06/2017. Hence the principal supply in the composite supply being goods, the appellant is liable to pay GST @ 28% on the whole contract.
For the reasons described herein, we hold that the contract in the impugned case is though a composite supply not for immovable property, and therefore does not fall under the definition of ‘works contract’ . The principal supply in the case is of Air conditioning units and the entire contract is taxable @ 28% as explained in the preceding paragraphs.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, MAHARASHTRA
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