TaxTMI 
TaxTMI 
Tax on supply of Live Plants with labour work
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....ax on supply of Live Plants with labour work<br> Query (Issue) Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 28-10-2019 Last Reply Date:- 29-10-2019 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Experts, One of my Client's provider of landscapping services, where he supplies live plants with supply of services as planting and maintaining the plants. He is supplying the....
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.... above live plants with 0% tax and services @ 18%. Please advice me. whether he is correct or wrong? Thanks in Advance. Reply By Himansu Sekhar: The Reply: Live plants after uprooted from the soil are goods. They are supplied as part of the land scaping services for creation of immovable properties. The can be classified as WCS. If the contract is for the composite services, the value of ....
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....the plants need to be included in the WCS. The other views are also welcome. Reply By Alkesh Jani: The Reply: Sir, In this regards, the live stock, such as "Live trees and other plants" are exempted vide Sl.No. 34 of Notification No.02/2017-CT (Rates) dated 28.06.2017. However, supply of individual is exempted, if you are able to prove that the said activity is composite supply wherein supply o....
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....f "Live Plant is principal supply" and rest is naturally bundled than whole is exempted from the Tax. If Mixed supply the value of Live plant is to be added in the value and GST is applicable. Thanks, Reply By THYAGARAJAN KALYANASUNDARAM: The Reply: Dear sir, It's obviously composite supply. Now my question is that which one is the principle supply. Since, the client doing landscaping work....
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...., I had a confusion which one is principal supply. Thanks in advance. Reply By KASTURI SETHI: The Reply: There is no dispute that it is a composite supply. In my view, out of these two supplies 'landscaping' is a major supply inasmuch as landscaping includes beautification by way of plantation of trees and ornamental plants. Landscaping is a wider term. The purpose of live plants is b....
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....eautification. GST @ 18% is applicable. If you feel that the supply of 'live plants' is a major/main supply, opt for Advance Ruling. Reply By Himansu Sekhar: The Reply: I have come across such issues who have worked for municipalties or real estate agents. They have paid tax on the gross value because the contract is for landscaping job. Reply By KASTURI SETHI: The Reply: Sh.Himansh....
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....u Sekhar Ji, Yes. You are absolutely right. I have also come across few decisions of AARs but these are not applicable squarely. Each case has different facts and circumstances. It depends upon the nature of the contract. That is why I also suggested to opt for Advance Ruling. Reply By Alkesh Jani: The Reply: Sir, I agree with the views of Sh. Kasturiji Sir, that each case has its own facts a....
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....nd circumstances, moreover, when it is obviously composite supply than no confusion should take place. If supply of live plant i.e. say nursery business, the principal can be supply of plant and if registered as landscaping service, supply of plant is ancillary. The supply should be at the single price, as per your query it is mentioned as individual supply. As you are holding all the documentary ....
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....evidence and also aware of facts, you are the best judge in the matter. Further, You can also opt for provisional assessment. Thanks<br> Discussion Forum - Knowledge Sharing ....