Case Law Details
In re McNally Bharat Engineering Company Limited (GST AAR Andhra Pradesh)
Whether the activities carried out by the applicant under all 3 contracts entered for establishment of Solar PV Power Project can be treated as Composite Supply? If yes, whether the said supply can be classified under SI. No.234 of Schedule I of the Notification No.1/2017- Central Tax (Rate) dt.28.06.2017 and GST shall be paid at the rate of 5%.
Ruling: The activities carried out by the applicant under all 3 contracts entered for establishment of Solar PV Power Project can be treated as Composite Supply, which is a composite supply of works contract as defined at Section 2 of CGST Act ‘2017 and APGST Act, 2017 and is treated as supply of service in terms of serial no.6, Schedule II of CGST Act ‘2017 and APGST Act, 2017. Hence, the said supply cannot be classified under SI. No.234 of Schedule I of the Notification No.1/2017- Central Tax (Rate) dt.28.06.2017 and GST at the rate of 5% is not applicable.
Instead it is classified under heading 9954, entry no. (ii) of S. No. 3 of the table of notification no. 11/2017 – Central Tax (Rate), Dated – 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% (9% under Central tax and 9% State tax).
Further, the amended rate of tax vide notification No.24/2018 Central Tax (Rate) dated: 31.12.2018 and notification No.27/2018, Central Tax (Rate) dated:31.12.2018, amending earlier notifications No.01/2017, Central Tax (Rate) dated:28.06.2017 and notification No.11/2017, Central Tax (Rate) dated:28.06.2017 respectively, which came into force from 01.01.2019, is applicable.
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