GST on Contract for Supply & Installation of Oxygen Tank

[ROHIT GOEL]

Dear experts,

One of our clients is engaged in business of Supply and Installation of Oxygen Tanks at various Hospital sites. As part of the contract, they get the Tank made and transport tank to customer site. There they perform civil work, build Concrete foundations and thereafter tank is attached to earth. However as per nature of the tank, it can be detached from earth after destroying the foundations and as it is can be deployed at any other site by building new foundations there.

The question is whether such tank can be called an immovable property and thus whether the contract can be called works contract u/s 2(119) of CGST Act or it would be composite supply where principal supply will be Supply of Tank.

AI Summary

Debate on Oxygen Tanks as Immovable Property Under GST: Works Contract or Composite Supply? Legal Precedents Examined. A client involved in supplying and installing oxygen tanks at hospitals seeks clarity on whether these tanks qualify as immovable property under GST law, impacting their classification as a works contract or a composite supply. The tanks, which can be detached and relocated, raise questions about their status. Responses vary: one suggests they fall under works contract services due to installation, while others argue they are not immovable property since they can be moved without damage. The discussion references legal precedents, emphasizing the tank's mobility over its installation method in determining its classification.