2019-VIL-15-SC-CU

SGST Advance Ruling Authority

GST – Tamil Nadu AAR - Section 2(30) of the CGST Act - Composite Supply - Applicant is engaged in the business of trading of coal – customer of the applicant first places purchase order for procurement of coal and later intend the applicant to provide the coal handling and distribution service as well - the first contract is entered into for supply of coal and the second contract for rendering coal handling and distribution is entered into later – Whether applicant is liable to discharge GST at 18% on coal handling and distribution charges collected in respect of supply of coal handling and distribution services or whether the applicant can club the coal handling and distribution service ordered by customer separately with ‘supply of coal’ as a composite supply of coal and thereby pay 5% GST – HELD - Sale of coal takes place first and the ownership of the coal vests with the buyer. Later the work order for supply of service of Coal Handling and Transportation is entered into. Thus, the coal becomes the property of the buyer and handling and transportation service is rendered by the applicant subsequently based on an independent work order - the supply of coal done through a separate purchase order and the supply of Coal handling and distribution of coal done through a subsequent work order are two individual supplies which are not rendered in conjunction with each other and have to be treated as independent supplies only - the supply of coal is liable for 5% GST and the supply of service of handling & distribution is liable for 18% GST

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