In re TATA Projects Limited (GST AAR Tamilnadu)
1. Whether Supply of Engineering, Procurement & Construction (EPC) contract for establishment of Integrated Cryogenic Engine & Stage Test facility (ICET) 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 as specified in the contract between the applicant and the ISRO Propulsion Complex Mahendragiri for establishment of Integrated Cryogenic Engine & Stage Test facility wherein both goods and services supplied is 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 No. 45/2017-Central Tax (Rate) dt 14th November, 2017?
This supply is a Works Contract in terms of Section 2(119) of CGST and TNGST Act 017 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.
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 entire transaction are taxable at the rate applicable to this supply of works contract.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMILNADU
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, 11th 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 Integrated Cryogenic Engine & Stage Test Facility. They are registered under GST vide GSTIN 33AAACT4119L1ZF. They have preferred an application seeking Advance Ruling on
1. Whether supply of Engineering, Procurement & Construction (EPC) contract for establishment of Integrated Cryogenic Engine & Stage Test facility (ICET) 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 No. 45/2017-Central Tax (Rate) dt 14th November, 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, Director, ISRO Propulsion Complex (abbreviated as IPRC), Indian Space Research Organization, Department of space, Government of India, Mahendragiri, Tirunelveli District, Tamil Nadu (ISRO) has awarded them the contract for establishment of Integrated Cryogenic Engine & stage Test facility (ICET) for Satellite launch Vehicle Program vide contract No.IPRC/PUR/2016E008630101 dated 02/11/18. ISRO will provide the Front End Engineering Design (FEED) of the system.
2.2 Brief scope of works to be carried out by the applicant is stated as following:
