2020-VIL-227-AAR

SGST Advance Ruling Authority

GST – Maharashtra AAR – Works Contract or Composite Supply - Activity of setting up of Data Center - whether supply of goods and services by the applicant qualify as 'works contract' as defined under Section 2(119) of the CGST Act – activity of design of data Centre, supply of equipment, transport and delivery to sites, training, installation, testing and commissioning of such equipment – HELD - The Statement of Works Activities clearly bifurcates the contract into a supply of goods and supply of services but such supplies are naturally bundled and in conjunction with each other - the major part of the contract is supply of goods. These goods are sold to the client by the applicant and they receive separate payment for such goods sold. Further, the goods that are supplied are used by the applicant to provide services of installation, testing and commissioning of the Data Center. Without these goods the services cannot be supplied by the applicant and therefore the goods and service are supplied as a combination and in conjunction and in the course of their business where the principal supply is supply of goods. Thus, there is a composite supply in the subject case but there is no construction of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of the contract. Therefore, there is no works contract involved in the subject case - the supply of goods and service by the applicant for setting up of Data Center does not qualify as ‘works contract’ as defined under Section 2(119) of the CGST Act

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