Classification of service— The present appeal has been filed by Sterlite Technologies Limited against the advance Ruling.

The activities of Applicant involve manufacture of telecom products such as optic fiber, optic fiber cable, etc. and services in relation to laying of these optic fiber cables (either underground or hung overhead) to create a network, setting up of control centres, installation of equipment, commissioning of network and other ancillary activities that may be necessary for creation of network infrastructure for its customers in the telecom industry.

The appellant had filed an application for Advance Ruling before the Maharashtra Authority for Advance Ruling 

to determine following questions:-

i. whether the supplies of goods or services for 'selling up of network' would qualify as 'works contracts' as defined in Section 2(119) of the CGST Act?

ii. If supplies contemplated as per the contract with BSNL are not treated as works contract, can these continue to qualify as composite supply? if yes what is the principle supply?

iii. What is the rate of tax applicable to the supplies made under the contract?

The Authorities ruled as under:

i. The supply of goods or services for 'setting up of network' would quality as a composite supply of 'works contract' as defined under Section 2(119) of the CGST Act.

ii. Activities of the Appellant are covered by sub-clause (ii) of Entry No. 3 of the Rate Notification and attract GST al the rate of 18%.

Held that—This authority find that the appeal filed by the appellant is allowed and second order of ARA is modified accordingly. The supply under the contract from 1.4.2019 to 31.12 21 are held as falling under entry at serial number 3(vi)(a) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 and accordingly taxable at 6% under CGST and 6% under SGST or 12% under IGST Act.