Composite supply of materials & erection work is supply of service

In re Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (GST AAR Madhya Pradesh) The composite supply of works contract as defined at Section 2 of CGST Act ‘2017 and MPGST Act, 2017 is treated as supply of service in terms of serial no.6, Schedule II of CGST Act ‘2017 and MPGST Act, 2017 and and chargeable to GST at 18%. In the instant case, the applicant had awarded work to the successful bidder for Supply of Materials and Erection respectively. Therefore, the contract entered by the applicant is squarely falls under the works contract and falls under entry no. (ii) of ...