Air cooling contracts

[Bharat Cholleti]

Dear sir,

Applicant undertakes design,supply,erection and installation of air cooling contracts in various commercial places like, theaters, marriage halls, convention Centre etc, Applicant prepares drawings to lay out the ducting lines, procure require material such as blowers etc within and out side the state and required fabrications will be done at the worksite and some fabrication will also be done at the applicant place of business and moved to worksite. what is the rate of tax and HSN/SAC. kindly advise with statutory provisions and case laws, thanks in advance,

[RAJA SWAMINATHAN]

It is a composite contract which is being executed, the tax rate of principal supply will be applicable.

AI Summary

Composite supply: principal supply's tax rate governs air cooling contracts with design, supply and installation. The contract for design, procurement, fabrication, supply, erection and installation of air cooling systems is a composite supply; the GST rate and HSN/SAC classification are governed by the principal supply within that composite transaction, so the dominant element (equipment supply or installation service) must be identified on the facts to determine the applicable tax rate.