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Applicant is a supplier of works contract service, of which freight and transportation is merely a component and not a separate and independent identity and GST is to be paid @ 18% on the entire value of the composite supply, including supply of materials freight and transportation, erection, commissioning etc.

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Authority for Advance Ruling — GTA Service – The applicant engaged in technology solutions for intelligent (smart), sustainable cities, smart grid, building technologies, mobility and power distribution. The Applicant has a contract with one of the major Public Sector Undertakings. The Applicant through a separate “Service Contract” is entrusted with the responsibility of delivery of the goods at Customer’s site, for which he engages local transporters who issue consignment notes to the Applicant and issue their freight invoices. The Applicant charges local transportation from the customer. Since the consignment note is already issued by the transporters engaged by the Applicant, no subsequent additional consignment note is issued by the Applicant. The applicant sought an advance ruling as to (i) whether the freight charges recovered from the customer without issuance of consignment note will be eligible for exemption from CGST and SGST as prescribed in Serial no. 18 of Notification no. 12/2017 – CTR.
Held that:- The Hon’ble Authority for Advance Ruling ruled that services under the contract are in the nature of ‘Composite supply of Works Contract’ which is a service and would be taxable @ 18% and further held answer to both questions pertaining to GTA in negative.—Siemens Limited, In Re… [2018] 07 TAXLOK.COM 107 (AAR-Maharashtra)