Classification of supply

[Kaustubh Karandikar]

Supply, Installation. Testing and Commissioning of ‘Main Power Panel’ will be treated as Composite supply, Mixed Supply or a Works Contract?

[Padmanathan KV]

Kindly elaborate the nature of activity. It would be wise to see the contract and then state an opinion on the same.

[Shilpi Jain]

May not be a mixed supply. Though contract terms would help to comment better.

[Kaustubh Karandikar]

Padmanathan and Shilpi ji, the job undertaken is total electrical installations in a residential premises which includes Supply, Installation. Testing and Commissioning

[Amit Agrawal]

It is presumably understood from the query is that subject supply under consideration here is with respect of new flat under construction by the builder and subject supply is with relating to electrical wiring fitting with switch-board etc., as generally provided to the builder while selling flat to the buyer.

In my view, same is 'Works Contract Services' which is defined u/s 2 (119) of the CGST Act, 2017 as under:

“works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract"

Relevant explanatory notes to scheme of classification of services under GST issued by GOI:

9954: Construction services

995461: Electrical installation services including electrical wiring & fitting services, fire alarm installation services, burglar alarm installation services

This service code includes

i. special trade installation services involving the installation of basic electrical wiring circuits or fittings in buildings and other construction projects;

ii. electrical wiring and fitting services for emergency power supply systems;

iii. electrical services arising from the installation of appliances;

iv. installation services of meters; installation services of fire alarm systems;

v. installation services of burglar alarm systems at the construction site;

vi. installation services of all types of residential antenna including satellite antenna;

vii. installation services of cable television lines within a building; installation services of lightning conductors;

viii. electrical installation services of telecommunications equipment;

ix. electrical installation services of illumination and signalling systems for roads, railways, airports, harbours and similar premises;

x. installation services of heavy electrical equipment;

xi. installation services of telecommunications wiring, including of fibre optic cables;

xii. other electrical installation services n.e.c.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Kaustubh Karandikar]

thanks Amit ji for your detailed reply.

AI Summary

Works Contract Services: electrical supply with installation and commissioning treated as works contract under GST, subject to contract terms.
Supply, installation, testing and commissioning of electrical panels and wiring in a residential premises is described as falling within the statutory definition of works contract where installation and commissioning of immovable property involves transfer of property in goods; explanatory classification lists electrical installation services (wiring, fitting, installation and commissioning) under construction services. Contract terms must be examined to determine the precise allocation between goods and services.