18% GST leviable on EPC contract for thermal power station: AAR
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- Last Updated on 12 May, 2022
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Case Details: Authority for Advance Rulings, Uttar Pradesh Toshiba JSW Power Systems (P.) Ltd., In re - [2022] 137 taxmann.com 493 (AAR- UTTAR PRADESH)
Judiciary and Counsel Details
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- Abhishek Chauhan & Vivek Arya, Member
- Sivarajan Kalyanraman, AR for the Applicant.
Facts of the Case
The applicant was awarded a package of erection, procurement and commissioning (EPC) for thermal power station by state electricity generation corporation including services of goods transport by road. The scope and consideration for the services of goods transport by road to be provided under the contract were mentioned separately.It filed application for advance ruling to determine taxability of supply of goods and services made by it.
AAR Held
The Authority for Advance Ruling observed that the entire transaction of providing the goods and the services is naturally bundled and hence this would be clearly a case of composite supply of goods and supply of services. Since, the total project assigned to applicant was nothing but composite supply of works contract as envisaged under section 2(119) and therefore, the entire contract would be treated as a supply of services as per entry 6(a) of Schedule II of Central Goods and Services Tax Act, 2017. As per the Sl. No. 3(ii) of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, GST at rate of 18% shall be applicable on entire contract.
List of Cases Reviewed
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- Duncans Industries Ltd. v. State of U.P. [2000] 1 SCC 633 (para 23.1) followed.
List of Cases Referred to
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- K.M. Trans Logistics (P.) Ltd., In re [2020] 117 taxmann.com 609/81 GST 1 (AAAR – Rajasthan) (para 2)
- Nandganj Sihori Sugar Co. v. CCE [2014] 47 taxmann.com 92/46 GST 570 (New Delhi – CESTAT) (para 2)
- Duncans Industries Ltd. v. State of U.P. [2000] 1 SCC 633 (para 23.1).
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