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TMI Blog2020 (2) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... n of road transportation system for use by general public and the supply made by the applicant is more appropriately classified under Entry (iv) to Serial No. 3 of the CGST Rate Notification rather than Entry (vi) of the said Notification. Whether the rate of GST with respect to the services rendered by the sub-contractors to the main contractor i.e. the applicant would be applicable @ 12% in view of Entry (vi) and (iv) of the CGST Rate Notification read with the UPGST Rate Notification or @ 18%? - Section 95(a) of CGST Act, 2017 - HELD THAT:- Any person/applicant can seek advance ruling in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by him. However, in the instant case the applicant wishes to know the GST rate for the sub-contractor providing input services to them, which is outside the [purview] of Advance Ruling - no ruling can be issued on this question. X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 7. We have gone through the submissions made by the applicant and have examined the detailed explanation submitted by them. We observe that the questions sought by the applicant are - (I) Whether the "composite supply" of "works contract" provided by the applicant to NHAI shall be classified under Entry (vi) to Serial No. 3 of the CGST Rate Notification read with the UPGST Rate Notification liable to effective rate of GST @ 12% including CGST and UPGST? (II) Whether the "composite supply" of "works contract" provided by the applicant to NHAI shall also be classified under Entry (iv) to Serial No. 3 of the CGST Rate Notification read with the UPGST Rate Notification liable to effective rate of GST @ 12% including CGST and UPGST? (III) Whether the rate of GST with respect to the services rendered by the sub-contractors to the main contractor i.e. the applicant would be applicable @ 12% in view of Entry (vi) and (iv) of the CGST Rate Notification read with the UPGST Rate Notification or @ 18%? 8. As the question number I & Il asked by the applicant are interrelated, we take up both the questions together for discussion. 9. As regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (iv) Which classification will be more appropriate among Entry (iv) or Entry (vi) of the CGST Rate Notification. 11. As per the sub-section (30) of Section 2 of the CGST Act, 2017, the "Composite supply" is defined as : "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply" Further the term "works contract" is' defined in sub-section (119) of Section 2 of CGST Act, 2017 as : "(119) '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 contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al articles such as glasses and tapestry fixed by tenant are not affixtures. (3) The fixing of the plates (Machinery) to a foundation is meant only to give stability to plant and keep it's operation vibration free." From the aforementioned discussions, we are in unison with the applicant that the ITS (Intelligent Transport System) Installation work undertaken by the applicant, qualifies as 'works contract' as per Section 2(119) of the CGST Act. 15. As regard to the question "Whether the supply is being used for construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a road, bridge, tunnel, or terminal for road transportation for use by general public", we noticed that ITS system is required to monitor the entire stretch of expressway to provide real time information about traffic conditions, pollution, weather conditions and status of the expressway to the road users, making road travels more convenient, faster and safer. The expressway opens up for the general public only when the ITS is installed and starts functioning. Further, the applicant in their submissions has also mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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