Case Law Details
In re Vikram Sarabhai Space Center (GST AAR Kerala)
The work of design, realisation, integration and commissioning of Trisonic Wind Tunnel as a turnkey project falls under the category of Works Contract and is taxable @ 12% GST.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING ,KERALA
Vikram Sarabhai Space Centre, Department of Space, Government of India entered into a contract with Tata Projects Ltd, Mumbai for design, fabrication, procurement, instrumentation and control and commissioning of Trisonic Wind Tunnel with Ejector System. The work involves fabrication of machineries, transportation of equipments to be attached to the system, construction of civil structure where the machinery is to be installed. Electrical works, integration of all bought out and fabricated items inside the civil buildings as an immovable system. The final product is an immovable system for test set up which will be used purely for Research and Development purpose to design Launch Vehicle and Reentry Space Craft. The civil work as well as the machinery and equipments inside become an integral and inseparable system. The testing equipment consisting of various components and civil structure can be worked only inside a specially constructed building. The whole set up becomes a composite system and the components cannot be used in isolation. They sought for advance ruling that:
(i) whether this supply can be considered as supply of equipment eligible for the concessional rate of GST of 5%under SI No. 243A of First Schedule of Notification No.01/2017 Integrated TM (Rate) dated 28.06.2017 as inserted by Notification No. 07/2018 Integrated Tax (Rate) dated 25.01.2018.
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