A contract shall be treated as Composite Contract under GST if it involves making of supply of goods and services which are inter-connected and inter-dependent on each other even though BOQ mentions separate value of goods and services. A pre GST period contract shall be treated as Composite Contract in GST if it satisfies the condition of Composite Supply.
Authority for Advance Ruling — Composite Contract – The Applicant is engaged in the business of IT Solutions. They alongwith their Consortium Partner have been awarded the contract for Design, Manufacture, Supply, Installation, Testing and Commissioning of the Automatic Fare Collection System for Lucknow Metro Rail Project by the Lucknow Metro Railway Corporation LMRC. The Applicant sought an Advance Ruling as to whether a contract can be treated as Composite Contract under GST if it involves making of supply of goods and services which are inter - connected and inter - dependent on each other even though BOQ mentions separate value of goods and services; whether a pre GST Period Contract can be treated as Composite Contract in GST even though there was separate Sale and Service Billing in Pre GST period; whether contract for designing, installation and setting up of Automatic Fare Collection System shall amount to a Composite Contract with Principal Supply being Supply of Service or Work Contract; GST rate to be charged on LMRC Project i.e. whether 18% or 12% after considering Rate Change Notification No. 1/2018- Integrated Tax (Rate) dated 25/01/2018.
Held that:- The Hon’ble Authority for Advance Ruling ruled that a contract shall be treated as Composite Contract under GST if it involves making of supply of goods and services which are inter-connected and inter-dependent on each other even though BOQ mentions separate value of goods and services. A pre GST period contract shall be treated as Composite Contract in GST if it satisfies the condition of Composite Supply. A contract for designing, installation and setting up of Automatic Fare Collection System for Lucknow Metro Project will amount to Work Contract. GST will be charged @ 12% in terms of Notification No. 01/2018-Integrated Tax (Rate) dated 25.01.2018 being composite services supplied to a Government entity.
A contract shall be treated as Composite Contract under GST if it involves making of supply of goods and services which are inter-connected and inter-dependent on each other even though BOQ mentions separate value of goods and services. A pre GST period contract shall be treated as Composite Contract in GST if it satisfies the condition of Composite Supply.
Authority for Advance Ruling — Composite Contract – The Applicant is engaged in the business of IT Solutions. They alongwith their Consortium Partner have been awarded the contract for Design, Manufacture, Supply, Installation, Testing and Commissioning of the Automatic Fare Collection System for Lucknow Metro Rail Project by the Lucknow Metro Railway Corporation LMRC. The Applicant sought an Advance Ruling as to whether a contract can be treated as Composite Contract under GST if it involves making of supply of goods and services which are inter - connected and inter - dependent on each other even though BOQ mentions separate value of goods and services; whether a pre GST Period Contract can be treated as Composite Contract in GST even though there was separate Sale and Service Billing in Pre GST period; whether contract for designing, installation and setting up of Automatic Fare Collection System shall amount to a Composite Contract with Principal Supply being Supply of Service or Work Contract; GST rate to be charged on LMRC Project i.e. whether 18% or 12% after considering Rate Change Notification No. 1/2018- Integrated Tax (Rate) dated 25/01/2018.
Held that:- The Hon’ble Authority for Advance Ruling ruled that a contract shall be treated as Composite Contract under GST if it involves making of supply of goods and services which are inter-connected and inter-dependent on each other even though BOQ mentions separate value of goods and services. A pre GST period contract shall be treated as Composite Contract in GST if it satisfies the condition of Composite Supply. A contract for designing, installation and setting up of Automatic Fare Collection System for Lucknow Metro Project will amount to Work Contract. GST will be charged @ 12% in terms of Notification No. 01/2018-Integrated Tax (Rate) dated 25.01.2018 being composite services supplied to a Government entity.