In re ITL-KCPL JV (GST AAR Gujarat)
Q1. Whether the supply of design and construction of Roads and Services of TP-1 Area Under Cluster-A of MBSIR on EPC Basis wherein both goods and services are supplied can be construed to be a Composite Supply of Works Contract in terms of Section 2(119) and section 2(30) of the CGST Act, 2017 ?
A1.We have observed that construction of TP Road and other Utility Service viz. Potable Water Supply system, Recycled Water Supply, Sewerage Collection System, Industrial Effluent Collection System, Storm Water Drainage Network are not naturally bundled service and also do not supply in combination with each other. Infact construction of Road of TP-1 area and other utility services are independent work contract service to each other. Therefore, the applicant services are not composite supply in terms of Section 2(30) of CGST Act.
The supply of design and construction of Roads and utility Services of TP-1 Area do not constitute composite supply.
Q2. If yes, whether the Principal Supply in this case will be the “Construction of Roads” and attract rate of 6% [CGST and SGST each] as per Notification No. 11/2017-CT (Rate) dated 28.06.2017) as amended)?
A2. GST rate on supply of construction of Road Service is as under :
