The street lighting activity undertaken under the Energy Performance Contract is to be considered as a Composite Supply where the principal supply is the service, classified under SAC 999112. The applicable rate of GST on supply made under this contract is 18%.
Authority for Advance Ruling — Energy Performance Contract – The applicant to implement and execute the Energy performance contract, for supply and installation of LED luminaries, feeder panels, switch gears, cables & other equipment and their installation and operation & maintenance of the Public Lighting Network. The applicant sought an advance ruling as to whether the street lighting activity undertaken under the Energy Performance Contract is to be considered as a Composite Supply under the Act 2017; if so, whether supply of luminaires, without which there can be no energy conservation, and which is the primary deliverables, constituting approximately 70% of the total project cost, can be construed as the principal supply. What would be the applicable rate of GST on supply made under the contract; if supply of services is held to be the principal supply, which of the various services being rendered would constitute the principal supply and what would be the applicable rate; whether the Applicant is entitled to the benefit of exemption under Entry 3A of Notification No. 12/2017-CTR dated 28-06-2017; if the transaction is treated as a supply of luminaires, what is the time of such supply; what would be the value of the aforesaid taxable supply given the fact that payments are to be received based on energy savings, which can be computed on a monthly basis, with reference to the energy auditor certifying the workings submitted by Applicant.
Held that:- The Hon’ble Authority for Advance Ruling held that the street lighting activity undertaken under the Energy Performance Contract is to be considered as a Composite Supply under the Act 2017, where the principal supply is the service, classified under SAC 999112 and its applicable rate is 18% as per entry SI.No.29 of Notification No. 11/2017-CTR dated 28.06.2017. O & M of the installed equipments would constitute the principal supply. The Applicant is not entitled to the benefit of exemption under Entry 3A of Notification No. 12/2017-CTR dated 28-06-2017. The time of supply of luminaries is not relevant as the impugned transaction is held to be a supply of service.
The street lighting activity undertaken under the Energy Performance Contract is to be considered as a Composite Supply where the principal supply is the service, classified under SAC 999112. The applicable rate of GST on supply made under this contract is 18%.
Authority for Advance Ruling — Energy Performance Contract – The applicant to implement and execute the Energy performance contract, for supply and installation of LED luminaries, feeder panels, switch gears, cables & other equipment and their installation and operation & maintenance of the Public Lighting Network. The applicant sought an advance ruling as to whether the street lighting activity undertaken under the Energy Performance Contract is to be considered as a Composite Supply under the Act 2017; if so, whether supply of luminaires, without which there can be no energy conservation, and which is the primary deliverables, constituting approximately 70% of the total project cost, can be construed as the principal supply. What would be the applicable rate of GST on supply made under the contract; if supply of services is held to be the principal supply, which of the various services being rendered would constitute the principal supply and what would be the applicable rate; whether the Applicant is entitled to the benefit of exemption under Entry 3A of Notification No. 12/2017-CTR dated 28-06-2017; if the transaction is treated as a supply of luminaires, what is the time of such supply; what would be the value of the aforesaid taxable supply given the fact that payments are to be received based on energy savings, which can be computed on a monthly basis, with reference to the energy auditor certifying the workings submitted by Applicant.
Held that:- The Hon’ble Authority for Advance Ruling held that the street lighting activity undertaken under the Energy Performance Contract is to be considered as a Composite Supply under the Act 2017, where the principal supply is the service, classified under SAC 999112 and its applicable rate is 18% as per entry SI.No.29 of Notification No. 11/2017-CTR dated 28.06.2017. O & M of the installed equipments would constitute the principal supply. The Applicant is not entitled to the benefit of exemption under Entry 3A of Notification No. 12/2017-CTR dated 28-06-2017. The time of supply of luminaries is not relevant as the impugned transaction is held to be a supply of service.