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The supply of renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration is a mixed supply under section 2 (74) of CGST Act.

Shanti Prime Publication Pvt. Ltd. Classification of Supply— The applicant, seeking an advance ruling in respect of the following questions.

Question 1. What is the classification of the activities transactions carried out by the Applicant Company as mentioned in the statement of facts (Annexure-I). In particular,

Do these activities / transactions of renting of workwear qualify as “transfer of right to use” of goods (i.e. workwear) by the Applicant Company to its customers in terms of entry 5 (f) of Schedule II of Central Goods and Services Act, 2017 (CGST Act’)?

Alternatively, do these activities transactions qualify as “transfer of right in goods” in terms of entry 1 (b) of Schedule II of CGST Act?

Answer:- Answered is in affirmative. The activities/transactions of renting of workwear qualify as “transfer of right to use” of goods in terms of entry 5 (f) of Schedule II of Central Goods and Services Act, 2017 (‘CGST Act’)

Question 2. What is the nature of the supply based on the facts and circumstances as mentioned in statement of facts (Annexure-I) i.e., renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration? In particular,

Does this supply qualify as “composite supply” as per section 2 (30) of CGST Act?

Alternatively, does this supply constitute a “mixed supply” under section 2 (74) of CGST Act?

Answer: - The supply of renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration is a mixed supply under section 2 (74) of CGST Act.

Question 3. In the event the answer to question (2) above is that the transaction undertaken by the Applicant Company qualifies as ‘composite supply’,

(i) What will be the “principle supply” for the purpose of section 2 (90) of CGST Act?

(ii) What will the applicable rate of GST?

(iii) Whether the conclusion (i.e. the transaction is a ‘composite supply) will remain the same if in addition to the services covered in question no. 2 above Applicant Company also provides additional service of renting of locker as part of the same consideration?

Answer: -This question is not required to be answered in view of the answers to question (1) and (2) above.Lindstorm Services India Private Limited, In Re… [2018] 4 TAXLOK.COM 097 (AAR-Maharashtra)

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