TaxTMI 
TaxTMI 
2021 (1) TMI 1099
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.... (GPSLS) carried out by the Applicant is classifiable as a supply of Works Contract Services? B. If the answer to Question 1 is in affirmative, whether GST is liable to be paid under Entry 3(vi) of Notification No. 11/2017-CT(Rate) dated 28 June 2017 (as amended) on the supply and installation activities along with operation and maintenance activities to be undertaken by the Applicant? C. Whether in facts and circumstances of the case, the capital subsidy received/receivable by the applicant for the subject transaction be liable to be included in the Transaction Value for the purpose of calculation of GST payable in terms of Section 15 of the CGST Act, 2017? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the OGST Act. 2.0 Submission of the Applicant 2.1 The applicant, while filing the application for seeking advance ruling, explained the facts, cited various judicial pronouncements in support of its submission.....
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....de by the applicant qualifies as a supply of works contract services. Further, it was submitted that the Greenfield Street Lighting System along with the Centralized Control & Monitoring System is an immovable property. In the present case, the streetlight poles, with the overreach arms, LED Luminaires, feeder panels, etc. attached thereto, are erected along the roadways by burying the same up to 1.8 meters underground depth. The street light poles have to be attached to the earth in such a manner that they should be capable of withstanding wind speeds of 150 km/h. Further, each pole is connected (underground) to an earthing electrode attached to every fifth pole. It is submitted that the said poles cannot be dismantled and reassembled without substantial damage to the entire paraphernalia. Thus. the Greenfield Street Lighting System qualifies as an immovable property. 2.5 The applicant has submitted that the entire contract shall he treated as a contract for the composite supply of works contract involving a supply of goods and services. In support of its claim, the applicant cited the decision of (i) Super Wealth Financial Enterprises (P) Ltd. reported in 2019 (20) GSTL 505 (A....
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....h its CA and Representatives. During P.H., Sri Kevin Gogri & Sri Siddhartha Shankar on behalf of the applicant re-iterated the submissions already furnished in the annexure to the application. Discussion & findings 4.0 We have gone through the advance ruling application along with all the annexures submitted at the time of filing application & the additional written submission of the applicant submitted on 06.11.2020. We find that the questions before us essentially pertain to classification of supply of goods/services and the rate of GST applicable on supply of such goods/service, particularly the applicability of concessional rate of tax in terms of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017. We, therefore observe that the issue before us is squarely covered under Section 97(2) of the CGST Act, 2017 and therefore we admit the application for consideration. 4.1 It has been argued by the applicant, through the written submission and also at the time of personal hearing, that the impugned supply is a supply of works contract service which is being supplied to Government of Odisha represented by the 'Directorate of Municipal Administration' and the 'Urban Local B....
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....ed to the client by the applicant constitutes 98.58% of total contract price. Further we find that the goods that are supplied are used by the applicant to provide services like installation, commissioning and maintenance etc. Without these goods the services cannot be supplied by the applicant and therefore we find that the goods and services are supplied as a combination and in conjunction and in the course of their business where the principal supply is supply of goods. Therefore, the instant supply squarely falls under the definition of "composite supply". Thus we find that there is a composite supply in the subject case since in the subject case there is no building, construction, fabrication, completion, erection etc of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of the contract. 4.6 Besides, as per Para 1(c) of Schedule II of the CGST/OGST Act, any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods and not a service. 4.7 The next issue to be considered and exa....
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....ral Control and Monitoring System: 4.9 The applicant further submitted that the street light poles and feeder panels are attached to the earth permanently and the LED Luminaires, outreach arms, etc. are also permanently fastened to the street light poles for their use. Thus, the Greenfield Street Lighting System qualifies as an immovable property. It was also stated that at the end of the term of the Agreement (7 years), the Applicant is under the obligation to transfer all the rights, interests and property in the equipment installed by it, including any goods used in providing the operation and maintenance services. Further. After the Greenfield Public Street Lighting System has been commissioned, the Applicant is then required to undertake the Operation and Maintenance of the system till the end of the term of the Agreement. The applicant has also explained what a Greenfield Public Street Lighting System & central control, monitoring system and automation system is, in their case and also the processes involved in the subject case. The applicant has tried to establish that the supply made by them qualifies as a supply of works contract services and GST is liable to be paid unde....
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....the purpose of calculation of GST payable in terms of Section 15 of the CGST Act, 2017? It was submitted that the Applicant is to receive from the Authority and the ULBs a consideration, in the form of Capital Subsidy, being 90% of the total capital expenditure incurred by the applicant in supplying, installing and commissioning of the equipment. In support of its claim, the applicant relied upon provisions of Section 15 of the CGST Act, 2017, contended that the amount of subsidy received/receivable from the central government and state government shall not be included in the value of supply of the supplier who receives the subsidy. In their case, the 'Authority' from whom the subsidy received/receivable is an extension of the State Government. Therefore, the capital subsidy should not be included in the Transaction Value for the purpose of calculation of GST. 4.13 In view of Section 15(2)(e) of the CGST Act, the 'value of supply' shall include subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. On perusal of the agreement/contract, we see that the capital subsidy received/ receivable by the applicant in the instant ....