9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 816 - AAR - GSTClassification of goods and services - rate of GST - creation of Video Conference software/ network - applicant is an inter-state supplier of various goods and services to the state of Karnataka - composite supply or mixed supply? - HELD THAT - The essential element of whole supply is Video Conference software/ network. All other goods and services are involved in carrying out of smooth fixture and operation of video conference, therefore, the principal supply of the whole supply is Video Conference software/ solution. The supply falls under HSN 998316 to Notification No. 11/2017(Central Tax-Rate) dated 28.06.2017 (amended from time to time) and rate of GST is 18% (SGST 9% CGST 9%).
Issues Involved:
1. Classification of goods and services supplied by the applicant. 2. Applicable rate of GST on goods and services supplied by the applicant. Issue-wise Detailed Analysis: 1. Classification of Goods and Services Supplied by the Applicant: The applicant, M/s. Vedant Synergy Pvt. Ltd., is involved in supplying various goods and services to the Centre for e-Governance, Government of Karnataka. The supplied goods include central MCU and other equipment, 7000 client licenses, speakers, and cameras. The services include the supply of VC engineers, helpdesk engineers, and AMC and O&M support for five years. The applicant contends that these supplies constitute a "works contract service" and should attract GST at 12% as per Notification No. 11/2017 dated 28.06.2017. However, the jurisdictional officer classifies the goods and services under SAC 9983, suggesting an 18% GST rate. Upon review, it was observed that the supply is a mix of goods and services, which could be categorized as either a works contract service or a mixed supply. According to Section 8 of the GST Act, 2017, a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. Section 2(30) defines "composite supply" as naturally bundled taxable supplies provided in conjunction with each other, with one being the principal supply. The term "works contract" under Section 2(119) of the GST Act refers to contracts involving immovable property. Since the supplied goods (e.g., central MCU, client licenses, speakers, cameras) are not immovable and can be dismantled, they do not constitute a works contract. Therefore, the supply is identified as a composite supply. 2. Applicable Rate of GST on Goods and Services Supplied by the Applicant: The principal supply in this composite supply is identified as the Video Conference (VC) software/solution, as the entire supply revolves around VC implementation and maintenance. Thus, the composite supply is classified under HSN 998316 (Information technology infrastructure and network management services). According to Notification No. 11/2017 (Central Tax-Rate) dated 28.06.2017, as amended, the GST rate for services under HSN 998316 is 18% (SGST 9% + CGST 9%). Conclusion: The goods and services supplied by the applicant are classifiable under HSN 998316 (Information technology infrastructure and network management services), attracting a GST rate of 18% (SGST 9% + CGST 9%).
|
