Classification of service— In the instant case, the applicant is a consortium being formed for carrying out design and construction of roads and services on EPC Basis. 

The applicant has received contract from Mandal Becharaji Special Investment Regional Development Authority to carry out the design and construction of roads and services of TP-1 Area as per Schedule A and B together with Project Facilities as specified in Schedule C and in conformity with the Specifications and Standards set out in Schedule D.

Question on which Advance Ruling sought:

1. Whether the supply of design and construction of Roads and Services of TP-1 Area Under Cluster-A of MBSIR on EPC Basis wherein both goods and services are supplied can be construed to be a Composite Supply of Works Contract in terms of Section 2(119) and section 2(30) of the CGST Act, 2017?

2. If yes, whether the Principal Supply in this case will be the “Construction of Roads” and attract rate of 6% [CGST and SGST each] as per Notification No. 11/2017-CT(Rate) dated 28.06.2017) as amended)?

The applicant service of construction of other Utility Service viz. Potable Water Supply system, Recycled Water Supply, Sewerage Collection System, Industrial Effluent Collection System, Storm Water Drainage Network involves components of goods and services, therefore covers under the category of Work Contract service and is liable to GST @18%.

Held that—  The supply of design and construction of Roads and utility Services of TP-1 Area do not constitute composite supply.

 GST rate on supply of construction of Road Service is 12% From 1-7-2017 to 17-7-22 and 18% From 18-7-22 onwards.

GST Rate on supply of construction of all the utility services as per Service Order attract GST @18 %.