Classification of Supply — Sections 2(30), 2(74) , 2(90), 8, of CGST Act, 2017/SGST Act, 2017; Section 10(1)(a), 12(2) of IGST Act, 2017 - The applicant is engaged in the business of import and manufacture of rail locomotive engines for supply to Indian Railways. The Applicant sought Advance Ruling on the various questions including “Whether supply of comprehensive annual maintenance service which may also involve incidental supply of spare parts/goods should be classified as a composite supply or mixed supply?”
The Authority Ruled out the aforesaid question that “since the supply of maintenance service is for a one and fixed price with or without supply of spare parts/goods and supply of service and goods is made in conjunction with each other in the ordinary course as per maintenance contracts, this maintenance service to the extent of presence of all the necessary ingredients cited in the legal provisions quoted supra, is naturally bundled with the incidental supply of goods., it is case of composite supply of service”.—Ge Diesel Locomotive Pvt. Ltd., In Re… [2018] 02 TAXLOK.COM 377 (AAR-UP)