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The supply of electricity and water are components of the main supply and are ancillary to the main supply and hence cannot be segregated or vivisected from the main supply and is liable to G.S.T. at the same rate as the main supply.

Works Contract The applicant requested advance ruling on the following:

1. Whether, having regard to the background and details including the scope of work of the Deposit work contained in the M.O.U. entered into between CoPT and N.T.R.O., what is the nature of the services rendered by CoPT under the M.O.U. entered Into between CoPT and N.T.R.O.? Whether it would be treated as a “Works Contract” as per Section 2 (119) of the CGST Act or as a Composite Supply for services as per Section 2 (30) of the CGST Act or as a mixed supply as defined in Section 2 (74) of the CGST Act?

2. Whether, having regard to the background and details Including the scope of work of the Deposit work contained in the M.O.U. entered into between CoPT and N.T.R.O., whether CoPT is eligible to take the benefit of reduced rate of 12% GST as per Notification No 24/2017- IT(R) dated 21.09.2017, in respect of the services provided by it to N.T.R.O. under the M.O.U.?

3. Whether, having regard to the background and details Including the scope of work of the Deposit work contained in the M.O.U. entered Into between CoPT and N.T.R.O., whether the contractors engaged by COPT to execute work as envisaged in the M.O.U., would be eligible to take the benefit of reduced rate of 12% GST as per Notification No.24/2017- IT(R) dated 21.09.2017, in respect of the services provided by them to CoPT?

4. If CoPT is eligible to take the benefit of reduced rate of 12% GST as per Notification No 24/2017- IT(R) dated 21.09.2017; whether it is entitled to claim refund of the excess remittance of GST (6%) remitted from the date of applicability of the said Notification?

5. If the supplies to N.T.R.O. are taxable at 12%, as per Notification 24/2017- IT(R) dated 21.09.2017, whether supply of goods such as electricity and water, which are exempt from GST are also taxable at the rate of 12% as composite supply of services?

Held that—
The activity undertaken by the applicant as per the M.O.U. dated 22.12.2016 entered with National Technical Research Organisation of the Government of India are covered under “Works Contract” as defined in Section 2 (119) of the CGST Act, 2017.

The rate of GST applicable on the services provided by the applicant as per the said M.O.U. is 12% as per Sl No. 3 (vi) (a) of the Notification No. 08/2017 - Integrated Tax (Rate) dated 28.06.2017 as amended.

The rate of GST applicable on the services provided by the contractors / sub contractors to the applicant as envisaged in the said M.O.U. is 12% as per Sl No. 3 (ix) of the Notification No. 08/2017 - Integrated Tax (Rate) dated 28.06.2017 as amended.

The applicant is entitled for refund of the excess GST paid if any; subject to the provisions of Section 54 of the CGST Act, 2017 and the Rules made thereunder.

The supply of electricity and water are components of the main supply and are ancillary to the main supply and hence cannot be segregated or vivisected from the main supply and is liable to G.S.T. at the same rate as the main supply.—Cochin Port Trust, In Re… [2020] 24 TAXLOK.COM 066 (AAR-Kerala)