Composite supply eligibility

[Bharat Cholleti]

Sir,

A small query:- Notification No 45/2017- Central tax (Rate) Dt 14.11.2017- Scientific and technical instruments- supplied to Research institution is falling in 5% GST rate . Now the question is Supply and installation of Clean Rooms comes under this category or not ? If comes can he charge GST 5% or not ? Please enlighten me

[Ganeshan Kalyani]

What is Clean Rooms? If you are asking that scientific instruments are chargeable at 5% GST then whether its installation will also be attracting 5% GST or not. If yes the answer is yes because of composite supply.

[Bharat Cholleti]

Sir,

Clean rooms which is required in Chemical and pharma industries for Research and development purpose, which is bacteria and pollution free room would be made of stainless steel and some other material. Are these rooms are covered under this notification for concessional rate of tax.

[KASTURI SETHI]

In view of your reply dated 13.11.21 above, it is composite supply and hence I agree with the reply of Sh.Ganeshan Kalyani Ji.

[Ganeshan Kalyani]

Thank you Sri Kasturi Sir.

AI Summary

Composite supply: installation of clean rooms bundled with scientific instruments can attract concessional GST for research institution supplies. Respondents concluded that supply and installation of clean rooms for research institutions is a composite supply; the installation component follows the tax treatment of the principal scientific/technical instruments supply and therefore attracts the concessional GST rate applicable to such supplies.