In re Tata Projects Limited (GST AAR Tamilnadu)
Q1. Whether supply of Engineering, Procurement and Construction (EPC) contract for establishment of Fluids Servicing System where in both goods and services are supplied can be construed to be a composite supply in terms of Section 2(30) of CGST Act, 2017.
The Supply of Engineering, Procurement and Construction (EPC) contract for establishment of Fluids Servicing System between the applicant and IPRC is a composite supply in terms of Section 2(30) of CGST and TNGST Act, 2017.
Q2. If Yes, Whether the Principal Supply in such case can be said to be “ Establishment of Fluids Servicing System(FSS)” can be taxable at 5% GST vide notification No.45/2017- Central Tax(Rate) dated 14/11/2017.
This supply is a works contract in terms of Section 2(119) of CGST and TNGST Act, 2017 and hence Notification No.45/2017- Central Tax(Rate) dated 14/11/2017 and corresponding SGST Notification vide G.O. (Ms) No.161, dated 14.11.2017 is not applicable
Q3. If Principal Supply taxable at 5%, whether the entire transaction in the contract is taxed as per the rate applicable to Principal Supply?
The complete transaction is taxable at the rate applicable to this supply of works contract.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING TAMIL NADU
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. Tata Projects Limited , No.9, First Floor, AF Block, 8th Street, llth Main Road, Anna Nagar, Chennai-600040 (hereinafter called the Applicant or TPL) are engaged in the process, design, detailed engineering, procurement, shop fabrication & inspection, supply, storage, site fabrication, erection, inspection & commissioning of fluid servicing system of Semi Cryo Integrated Engine Test Facility. They are registered under GST with GSTIN 33AAACT4119L1ZF. They have preferred an application seeking Advance Ruling on :
1. “Whether supply of Engineering, Procurement and Construction (EPC) contract for establishment of Fluids Servicing System where in both goods and services are supplied can be construed to be a composite supply in terms of Section 2(30) of CGST Act, 2017″.
2. “If Yes, Whether the Principal Supply in such case can be said to be ” Establishment of Fluids Servicing System (FSS)” can be taxable at 5% GST vide Notification 45/2017- Central Tax (Rate) dated 14/11/2017“.
3. If Principal Supply taxable at 5%, whether the entire transaction in the contract is taxed as per the rate applicable to Principal Supply?
The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted the copy of Challan evidencing payment of application fees of Rs.5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The Applicant in the Statement of Facts has stated that, the Indian Space Research Organization (ISRO) has planned for a launch vehicle with heavy payload capability powered by Semi Cryogenic Engine which uses rocket grade refined kerosene(ISROSENE) as fuel and Liquid Oxygen as Oxidizer. ISRO Propulsion Complex(IPRC), Mahendragiri has been entrusted with the task of ground testing of Semi Cryogenic Engine for which a dedicated test facility called Fluid Servicing System of Semi Cryo Integrated Engine Test Facility (SIET) is being realized. For the above cited work a contract for Establishment of Fluids Servicing System(FSS) of SIET has been awarded to the applicant.
2.2 The Applicant, has further informed that the contract awarded is only for Establishment of Fluid Servicing System of SIET which comprises ISROSENE system, Liquid Oxygen System, Liquid Nitrogen system, Gaseous Nitrogen System, Gaseous Helium System, Water System and Filed Instrumentation system. ISRO has carried out Process Design and Basic Engineering work of FSS. The duration of project is for 27 months.
2.3 Brief scope of Engineering, Procurement and Construction (EPC) works to be carried out by the applicant comprises the following.
