supply to Goverment

[NILESH PITALE]

Respected Concern Authority

Our Client received Contract of ( Work Design, Fabrication,Supply, Installation,Testing,& Commissioning Heavy Duty Back Rake type Mechanical Screen) from Goverment Authority,

Question No-1: Can we consider it Composit Supply and Changed it 12% , if Not then 18% ?

Question No: 2: If we awarded said contact to Sub -contractor then he will charged us 12% As per Notification No. 1/2018-Central Tax (Rate) dated 25.1.2018

Question 3: If As per above notification tax Rate 12% then , I guess Our contact is chargeable at 18%

Please Guide us what we should charged to the Goverment

AI Summary

Composite supply classification leads to a reduced GST rate for combined supply-installation contracts with government clients.
The contract for supply, installation, testing and commissioning of the mechanical screen is treated as a composite supply rather than a works contract tied to immovable property, and the consolidated tax rate applicable to such composite supplies applies; subcontractors should charge tax at that consolidated rate. An Authority for Advance Ruling on a reverse-osmosis plant concluded a similar integrated supply was a single composite works contract with services as the predominant element, and that the government-facing consolidated tax rate under the relevant notification applies.