Authority for Advance Ruling — GST on services of setting up of Wet Limestone FGD plant and its operation & maintenance – The applicant engaged in the construction business and providing works contracts services to various customers including the Government, Public Sector Undertakings, Government Entities and Private Sector entities. The applicant sought an advance ruling as to whether the combined service of setting up of Wet Limestone FGD plant and operation & maintenance be considered as a composite supply; if answer to question (a) above is yes then, whether the supply provided by the applicant is a composite supply of works contract as per Section 2(30) and Section 2(119) of CGST Act, 2017 and what would be the principal supply; if the supply is considered as a composite supply of works contract services, whether the said supply to be provided by the applicant would fall under the entry no.3(iv)(e) of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended time to time and what would be the applicable GST rate and SAC/ HSN.

Held that:- The Hon’ble Authority for Advance Ruling held that the combined service of setting up of Wet Limestone FGD plant and operation & maintenance of the said plant can’t be considered as a composite supply. The setting up of FGD plant merits classification under SAC 995429 and attracts GST at the rate of 12%, in terms of entry No.3(iv)(e) of the Notification No.11/2017-CTR dated 28.06.2017. Further the Operation & Maintenance of the FGD plant merit classification under SAC 9985, as “Business Support” service and attracts GST at the rate of 18%, in terms of entry No.23(iii) of the Notification No.11/2017-CTR dated 28.06.2017.