Installation services for illumination of roads cannot be construed as Construction Services

In re HPL Electric and power limited (GST AAR Chhattisgarh)

GST on installation of highway lighting system

The AAR, Chhattisgarh in the matter of M/s HPL Electric and Power Ltd. [Order No. STC/AAR/02/2022 dated May 2, 2022] has ruled that installation services for highway lighting systems cannot be considered as “Construction services” under SI. No. 3(iv)(a) of Notification No. 11/2017 – Central Tax (Rate) dated June 28, 2017 (“the Services Rate Notification”) thus, ineligible to the benefit of 12% GST.

Facts:

M/s HPL Electric and Power Ltd. (“the Applicant”) is engaged in the business of manufacture, sale and installation of electrical equipments. The Applicant has entered into an agreement with M/s. Adani Infra India Ltd. (“AIIL”) to provide services for design, engineering, supply, installation etc. of Highway Lighting System, which is a part of the project of development and maintenance of a 53km 4-laned highway in Chhattisgarh.

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