In this case, although a single contract has been made for supply of goods and services, the clear-cut demarcation of activities of supply of goods and supply of services to each Cost Centre clearly demonstrates the intention of the contracting parties that each of the cost centres C, D, E and G is an independent supply centre undertaking either a supply of goods or a supply of service. Hence, the supplies made by Cost Centres are to be considered as independent supplies of goods and services.
Appellate Authority for Advance Ruling — Composite Supply – The appellant department filed appeal. The repondent have entered into a contract with M/s BMRCL for the manufacture and supply of Standard Gauge Intermediate Cars. The appellant sought an advance ruling as to whether the supplies made by cost centres to BMRCL are to be considered as independent supplies of goods and services depending upon the scope of the work and applicable GST at the rate of 18% for supply of services and at the rate of 5%/ 12% for supply of goods shall be levied and charged; consequently, what will be the time of supply for each supplies made by the cost centres; whether the supplies made by cost centres to BMRCL are to be considered as ‘composite supply’ as defined under Section 2(30) of the Act, 2017 read with Section 9(1) of the Act, with the supply of intermediate cars undertaken by cost centre as the principal supply on which GST at 12% shall be levied and charged; consequently, what will be the classification and time of supply for the entire Contract considering supplies made by Cost Centre as principal supply. The AAR held that the supplies made under Cost Centers form a composite supply and since the supply of goods i.e intermediate cars is the principal supply, the rate of tax as applicable to the supply of intermediate cars will be applicable to the composite supply in terms of Section 8 of the Act, 2077. The jurisdictional CGST officer reviewed the impugned order passed by the Authority and being aggrieved by the ruling passed, filed an appeal.
Held that:- The Hon’ble Appellate Authority for Advance Ruling allowed the appeal filed by the Assistant Commissioner and set aside the ruling given by the Authority for Advance Ruling dated 6th April 2021 with regard to composite supply.
In this case, although a single contract has been made for supply of goods and services, the clear-cut demarcation of activities of supply of goods and supply of services to each Cost Centre clearly demonstrates the intention of the contracting parties that each of the cost centres C, D, E and G is an independent supply centre undertaking either a supply of goods or a supply of service. Hence, the supplies made by Cost Centres are to be considered as independent supplies of goods and services.
Appellate Authority for Advance Ruling — Composite Supply – The appellant department filed appeal. The repondent have entered into a contract with M/s BMRCL for the manufacture and supply of Standard Gauge Intermediate Cars. The appellant sought an advance ruling as to whether the supplies made by cost centres to BMRCL are to be considered as independent supplies of goods and services depending upon the scope of the work and applicable GST at the rate of 18% for supply of services and at the rate of 5%/ 12% for supply of goods shall be levied and charged; consequently, what will be the time of supply for each supplies made by the cost centres; whether the supplies made by cost centres to BMRCL are to be considered as ‘composite supply’ as defined under Section 2(30) of the Act, 2017 read with Section 9(1) of the Act, with the supply of intermediate cars undertaken by cost centre as the principal supply on which GST at 12% shall be levied and charged; consequently, what will be the classification and time of supply for the entire Contract considering supplies made by Cost Centre as principal supply. The AAR held that the supplies made under Cost Centers form a composite supply and since the supply of goods i.e intermediate cars is the principal supply, the rate of tax as applicable to the supply of intermediate cars will be applicable to the composite supply in terms of Section 8 of the Act, 2077. The jurisdictional CGST officer reviewed the impugned order passed by the Authority and being aggrieved by the ruling passed, filed an appeal.
Held that:- The Hon’ble Appellate Authority for Advance Ruling allowed the appeal filed by the Assistant Commissioner and set aside the ruling given by the Authority for Advance Ruling dated 6th April 2021 with regard to composite supply.