Classification of service— In the instant case, the applicant submits that it is primarily engaged in the development and integration of advanced information systems oriented to the management, efficiently and securely, of the mobility of vehicles, goods and information flows and engaged in trading of goods along with installation & commissioning of Toll management systems.

The applicant was awarded the project by M/s. Adani Road Transport Ltd. (ARTL) for project of Tolling, Operation, Maintenance & Transfer of National Highway stretch from Palanpur – Randhanpur – Samkhiyali, Section of NH-27 in the State of Gujarat.  

Question on which Advance Ruling sought:

(i) Whether the composite supply of works contract provided by Tecsidel to M/s. Adani Road Transport Ltd. shall be classified under Entry (vi) of Serial No. 3 of the Notification No. 11/2017-C.T. (R), dated 28th June, 2017 (hereinafter referred to as ‘the CGST Rate Notification’) liable to effective rate of GST (‘Goods and Services Tax’) @ 12% including CGST and GGST?

(ii) Whether the composite supply of works contract provided by the Applicant to M/s. Adani Road Transport Ltd. shall also be classified under Entry (iv) to Serial No. 3 of the CGST Rate Notification read with the GGST Rate Notification liable to effective rate of GST @ 12% including CGST and GGST?

(iii) Whether the rate of GST with respect to the services rendered by the sub-contractor to the main contractor i.e. Tecsidel would be applicable @ 12% in view of Entry (vi) and (iv) of the CGST Rate Notification read with the GGST Rate Notification or @ 18%?.

The present case does not involve supply of Road along with TMS, but simply supply of TMS itself on an already constructed national highway stretch. Also Toll management system is different from an intelligent transport system per the cited Ruling

Held that— Subject supply is not covered at sr no 3(iv/vi) of said NT. Further, sr no 3(ix) of said notification is not attracted in subject case. GST is leviable at 18% vide Sr. No. 3 (xii) of Not. No. 11/2017-CT (Rate) dated 28-6-17 as amended.