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TMI Blog2019 (11) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... that is finally commissioned is an immovable system for test set up to be used purely for Research and Development purpose to design Launch Vehicle and Re-entry Space Craft. On commissioning of the project, the civil work as well as the machinery and equipments inside become an integral and inseparable system. As the installation and commissioning of the 1.2m trisonic Wind Tunnel includes works of civil structural, engineering, fabrication; procurement, electrical, pipelines and fire fighting systems, overall integration of the systems, commissioning, performance testing and training it is clear that the work will fall under the definition of works contract under Section 2 (119) of CGST Act, 2017. The activity being a works contract awa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Sl.No.243A of First Schedule of Notification No.01/2017 Integrated Tax (Rate) dtd.28-06-2018. 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 authorized representative was heard. It is stated that the work involves the fabrication of machineries, transportation of equipments to be attached to the syst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessional rate of tax is given only to the scientific and technical instruments, apparatus etc. From the submissions of the applicant, it is seen that the 1.2m Trisonic Wind Tunnel that is finally commissioned is an immovable system for test set up to be used purely for Research and Development purpose to design Launch Vehicle and Re-entry Space Craft. On commissioning of the project, the civil work as well as the machinery and equipments inside become an integral and inseparable system. As the installation and commissioning of the 1.2m trisonic Wind Tunnel includes works of civil structural, engineering, fabrication; procurement, electrical, pipelines and fire fighting systems, overall integration of the systems, commissioning, pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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