Authority for Advance Ruling — Taxability on Customized Furniture – The applicant has principal place of business is in Indore with the production facility at Pithampur. The Executive Engineer, Construction Division, Capital Production Administration (CPA), Bhopal - a Department of Government of Madhya Pradesh, floated a tender for supply, installation and fixing of customized furniture. The applicant sought an advance ruling as to whether (i) the work relating to supply, installation and fixing of customized furniture in a building is composite supply of goods or in the nature of works contract; (ii) rate of GST on the above Supply, if it is supply of goods or supply in the nature of works contract.
Held that:- The Hon’ble Authority for Advance Ruling held that the activities of supply, installation and fixing of furniture cannot be classified under Heading 9954 - Construction services, as provided in Sl.No.1 of Notification No.11/2017-Central Tax (Rate) dated, 28.06.2017. Rather, the contract conforms to composite supply as provided in Section 2(30) of GST Act, 2017. The supply made by the applicant consists of two taxable supplies of goods and services which are naturally bundled and supplied in conjunction with each other, where the supply of goods i.e. furniture is the principal supply. The goods shall merit classification under Chapter Head 9403 of GST Tariff and shall be liable to GST at the rate applicable at the time of supply.—Methodex Systems Private Limited, In Re… [2020] 22 TAXLOK.COM 144 (AAR-Madhya Pradesh)