In re M/s Tata Projects Limited (GST AAR Kerala)
Advance Ruling regarding Design, realisation, integration and commissioning of 1.2m trisonic wind tunnel at VSSC, ISRO, Thiruvananthapuram.
Whether the supply under the contract for ‘Design, Realisation, Integration and Commissioning of 1.2m Trisonic Wind Tunnel at Vikram Sarabhai Space Centre, ISRO, Thiruvananthapuram can be considered as supply of equipment eligible for the concessional rate of GST under SLNo.243A of First Schedule of Notification No.01/2017 Integrated Tax Rate dtd.28-06-2017.
The supply under the contract cannot be considered as supply of equipment eligible for concessional rate of goods and services tax as per Sl.No.243B of First Schedule of Notification No.01/2017 Integrated Tax (Rate) dated 28.06.2017.
If the above supply is considered as works contract whether it would be covered under Entry Sl.No.3 of Notification No.08/2017 Integrated Tax (Rate) dtd.28-06-2017 as amended by Notification No.24/2017 Integrated Tax (Rate) dtd.21-09-2017 attracting GST at the rate of 12%.
The work of design, realisation, integration and commissioning of 1.2m Trisonic Wind Tunnel as a turnkey project will fall under the definition of works contract under Section 2 (119) of the CGST Act, 2017. The Service provided to the Central Government by way of construction, erection, commissioning, installation, (completion, fitting out, of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession will attract 12% GST as per Sl.No.3(vi) of Notification No.08/2017 Integrated Tax (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KERALA
M/s. Vikram Sarabhai Space Centre, Department of Space, Government of India entered into a contract with Tata Projects Ltd, Mumbai for design, realization, integration and commissioning of 1.2m Trisonic Wind Tunnel at Thiruvananthapuram. The work involves aerodynamic structural and control design analysis, detailed design, detailed engineering, fabrication, procurement, inspection, third party inspection, loading and unloading of material, transportation to site, civil and electrical works, integration of systems, training, documentation, acceptance, testing and commissioning of 1.2m Trisonic Wind Tunnel. They sought for advance ruling on the following:
