9911796707
TMI Blog2018 (11) TMI 1825X X X X Extracts X X X X X X X X Extracts X X X X ..... ading, inland transportation and insurance for delivery at site, insurance, unloading, storage and handling at site, installation including civil works, testing and commissioning in respect of all plant and equipment supplied under first and third contracts. Hence, it is not only transportation activities which are being provided under fifth contract, but other services also, such as port handing of plant and machinery, storage and handling at site, installation including civil works, testing and commissioning as well. All such activities are being carried out by the applicant, in connection with goods covered under first and third contract. Therefore, supply of these goods and services is required to be assessed as composite supply. From d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am (North), Haryana [hereinafter referred to as the "Applicant"], is an associate of the Joint Venture of M/s Siemens AG, Germany (Lead Partner) and M/s Sumitomoto Electric Industries Ltd., Japan (Other Partner) (hereinafter referred to as "the JV"). 2. The JV has entered into a contract with Power Grid Corporation of India Ltd., for ±320 kV, 2 X 1000MW VSC based HVDC based terminals and DC XLPE Cable system between Pugalur and North Trichur associated with HVDC Bipole link between Western Region (Raigarh) and Southern region (Pugalur, Tamilnadu- North Trichur, Kerala) through a NOA vide ref No. CC-CS/698-SR2/HVDC-3249/7/G10/R/NOA-V/7217 dated 22-03-2017. This involves supply of equipment and services both offshore and onshore basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks, testing and commissioning in respect of all plant and equipment supplied under First and Third contracts. f. Onshore Services Contract-II {referred as the Sixth Contract) awarded to M/s Sumitomoto, for performance of ail other activities inter alia including port handing of plant and machinery, loading, inland transportation and insurance for delivery at site, insurance, unloading, storage and handling at site, installation including civil works, testing and commissioning in respect of all plant and equipment supplied under Second and Fourth contracts.. 5. The query of the Applicant relates to the Services activities involved in their fifth contract. The scope of work under this contract as referred to in (f) above. It includes a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of a GTA. 8. The question of which advance ruling is required is: d. Whether the freight charges covered by the Applicant under the contract from Power Grid Corp India without issuance of consignment note will be eligible for exemption from GST as prescribed in S. No. 18 of notification No. 12/2017 Central Tax Rates dated 28-06-2017 and the corresponding S. No. 18 of Notification No. 43/ST2 dated 30-06-2017 issued by Haryana Govt. DISUSSIONS AND FINDINGS: 9. Out of the six contracts, the Third Contract for supply of goods and the Fifth Contract for the services are onshore contracts assigned to the Applicant. The Applicant has sought ruling towards their transportation services being provided to the Power Grid Corp of India as Exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h contract, but other services also, such as port handing of plant and machinery, storage and handling at site, installation including civil works, testing and commissioning as well. All such activities are being carried out by the applicant, in connection with goods covered under first and third contract. Therefore, supply of these goods and services is required to be assessed as composite supply. Composite supply has been defined as under; vide Section 2(30) of the CGST/SGST Act, 2017. (30) "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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is required to be levied by considering them as composite supply and is required to be charged at the GST rate which the principal supply, amongst such supplies, is chargeable and exemption from GST, as being claimed by the applicant in respect of freight charges, as provided in Sr.No,18 of notification No. 12/2017 Central Tax Rates dated 28-06-2017 and the corresponding S. No. 18 of Notification No. 43/ST2 dated 30-06-2017 issued by Haryana Govt., is not applicable, because transportation is not a stand-alone activity under the said contract. Rather, even the fifth contract is also riot a stand-alone contract from the other five contracts. RULING: 14. The Applicant is not eligible for exemption from CGST/SGST, as provided in S.No.18 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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