18% GST payable on freight on supply of materials in a composite supply of works contract: AAR

In re EMC Ltd (GST AAR West Bengal) The applicant supplies works contract service, of which freight and transportation is merely a component and not a separate and independent identity, and GST is to be paid at 18% on the entire value of the composite supply, including supply of materials, freight and transportation, erection, commissioning etc. This ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act. FULL TEXT OF ADVANCE RULING 1. The Applicant is stated to be a supplier of materials and allied services for erection o...