9911796707
TMI Blog2019 (7) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... ant) is engaged in manufacturing, erection and commissioning, reconditioning, repairing and maintenance of milk dairy machinery and its equipments at Dairy sector. They are registered under GST with GSTIN 33AHSPA0553H2ZL. The applicant has sought Advance Ruling on: 1. Clarify whether their dairy machinery works is liable to tax at 12% (HSN 8434) or 18% (HSN 8413) 2. In dairy machinery works they have taken milk processing, milk chilling, refrigeration system, milk handling equipments, milk packing equipments and milk allied product making machinery. 3. For such supply and erection of dairy machinery it involves service charges also. If so what will be the rate of tax on the service charge component. 4. Whether their nature of activities falls under works contract or not. If so what will be the rate of tax and its HSN code and what are the details of entries to be made in monthly return GSTR 1. 5. Clarify the applicability of E way bill procedures for their business activities which involves goods sent on delivery challan for erection purpose and bill made subsequently and for taking back the machinery to their place for maintenance and what are the transport documents to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that the applicant is awarded work order by the Tiruchirapalli District Coopertive Milk Producers Union Ltd, to carry out the work towards the 7X7 Frick Ammonia Compressor, IBT Tank Liquid Separator in pipeline repairing and replacement work at Karur at a cost of Rs. 82,000/-(excl GST). As per the option of works sought by the tender document, the work involves supply of materials of 2" dia M.S pipe, liquid seperartor and pipeline M.S fittings; alteration wok for liquid oil separator (cutting, welding, removal alteration work) with consumables for welding such as bolt, nuts and other [Some text are missing in original PDF] work materials with labour charges; material transportation, loading and unloading and handling charges. It is seen that the quotation sought is for all the above supply together and the quotation given by the applicants also a single price for all. The work order shows GST at 18% and the invoice raised by the applicant is for "maintenance and repair services for ice bank tank liquid separator in pipe line repairing and replacement with necessary pipe and pipe fittings" wit HSN /SAC 998717 and GST 18%. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries to be made in monthly return GSTR 1. The Works Contracts has been defined in Section 2(119) of the CGST Act, 2OI7 as "works contract" means a contract for building, constructron. fabrication, completion, erection, installation, fitting out, lmprovement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract." The work undertaken by the applicant is not relating to any immovable property. Therefore [Some text are missing in original PDF] commissioning and installation of machinery undertaken by the applicant does not fall under the category of works contract. On the other hand their activity can be divided into two pafi parts viz (i) supply of goods i.e Milking machinery and dairy machinery attracting 12% GST as mentioned in para 1 above and (ii) installation of machineries classiliable under supply of "Commissioning erection and installation services" attracting 18% GST on the installation charges as mentioned in para 3 above. 6. We have carefu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the applicant provides the activity undertaken by them & in question No.3 has sought the applicable rate of tax on such supplies. The applicant has furnished the details of Enquiry by the Coop Milk Producers' Union Ltd, Work Order, invoice in respect of the works undertaken by them at Karur CC and Kakkalur diary. The work at Karur CC is 'Alteration of Refrigeration System Accumulator with replacing pipe line and fittings' and the same is undertaken by the applicant as Maintenance and Repair Service'. The work at Kakkalur diary is 'Providing new header to Inter-connected ICE Bank Tank 3 Nos to Accel compressor' and the same involves removal of existing suction pipes and laying new MS pipes with suitable size thermocole insulation and gladding with Aluminium sheet, which is undertaken by the applicant as ''Maintenance and Repair Service' (as seen from the Invoice raised by them). From the various documents furnished in connection with the two works undertaken by the applicant as stated above, it is seen that the works undertaken includes materials, handling of materials and labour charges. The works are Repair/ Replacement works of the existing structur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended S.No. Chapter, Section, Heading or Group Service Code (Tariff) Service Description (1) (2) (3) (4) 470 Heading 9987 Maintenance, repair and installation (except construction) service 9. The fourth question raised by the applicant and taken for consideration is whether their nature of activities falls under works contract or not. If so what will be the rate of tax and its HSN code. The definition for works contract as per Section 2(119) of CGST Act is as follows: "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; Thus only [Some text are missing in original PDF] property in goods is involved alone are 'Works Contracts'. In the above case, it is seen from the work order submitted by the applicant that the work undertaken by the applicant is related to repair/replacement/installation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
