Regarding Combined contract for Supply and Installation of CCTV Cameras and Fire Extinguishers - Works contract or Supply of goods?

[Shyam Agarwal]

Sir, whether Combined contract for Supply and Installation of CCTV Cameras and Fire Extinguishers in Residential building is treated as works contract under GST or supply of goods?

[YAGAY and SUN]

Supply and installation of CCTV would fall under the category works contract as without installation and link it with control room it would not work whereas there is no need to install the fire extinguishers as it may work without such installation hence would be treated as supply of goods.

[Shyam Agarwal]

Thanks for sharing your valuable suggestions but sir Fire Extinguishers are also installed and fixed on walls of Building and intention of permanancy is also there. Then please elaborate why it also not to be treated as a works contract under GST. And many other section of experts treat CCTV camera as a Composite supply of Goods. I request you to please suggest and also request to other Experts for sharing their views.

[Vamsi Krishna]

Hi

Under GST Law, works contract has been restricted to any work undertaken for an immovable property. Fire Extinguisher Installation for residential buuilding falls under the definition of works contract.

[KASTURI SETHI]

In my view, Fire Extinguisher is also covered under "Works Contract."

[Kishan Barai]

I would like to know from experts like KASTURI SETHI sir, that what difference it makes in GST Taxation if the above one is treated as "Works Contract" or "Supply of Goods"

[KASTURI SETHI]

Dear Sir, One major difference is that both have different rates of GST. There are other differences also. I shall throw light later on.

AI Summary

Works contract: combined supply and installation may be treated as works contract under GST, altering applicable tax treatment.
Whether a combined supply-and-installation contract for CCTV cameras and fire extinguishers is a works contract or a supply of goods under GST is debated: CCTV installation is argued to be a works contract or composite supply because it requires installation to function, while fire extinguishers were initially viewed as goods but others contend their permanent fixing to buildings brings them within the works contract definition, affecting GST rates and tax treatment.