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Activity of Composite supply of goods and services if supply of goods is below 25% out of total value of supply then GST will be NIL in consonance with entry No. 3A of Notification No.12/2017-CT (R) dated 28.06.2017 and if more than 25% of the total value of supply then GST will be @12% in consonance with entry No. 3(iii) of Notification No. 11/2017-CT (R).

Classification of service— In the instant case, the applicant is in the process for bidding for tender floated by the PHED, a unit of Government of Rajasthan for Operation and Maintenance of Mansi Wakai dam Stage-I, complete system including mechanical, electrical, instrumentation installation works switchyards/GSS and maintenance of Dam, pumping machinery, pipe line & tunnel from Mansi Wakai Dam to Nandeshwar filter plant project on ESCO and O&M contract. The terms and scope of the contract combines ESCO Model and O&M contract.

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:-

1. Whether the activity of operation and maintenance is to be considered as Supply of goods or a Supply of Services under CGST / RGST Act 2017? Accordingly, whether the transaction can be sub-classified as a “Pure Supply of Service” or “Pure Supply of Goods” or “Composite supply of goods and services being a Works contract?

2. Whether the applicant is entitled to the benefit of exemption under entry 3 A of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017, as amended? If not, what is applicable rate of tax?

The activity of Operation & Maintenance of Mansi Wakai dam Stage-I, complete system including mechanical, electrical, instrumentation installation works switchyards/GSS and maintenance of Dam, pumping machinery, pipe line & tunnel from Mansi Wakai Dam to Nandeshwar filter plant project on ESCO and O&M contract by the applicant is to be undertaken for a Government Department i.e. PHED.

Held that— The activity of O & M of Mansi Wakai dam Project on ESCO Model and O & M work by the applicant is to be undertaken /being undertaken for a Government Department. In this activity of Composite supply of goods and services the applicability of GST will be as under,-

(a) Composite supply of goods and services where supply of goods is below 25% out of total value of supply then GST will be @ NIL.

(b) Composite supply of goods and services where supply of goods is more than 25% of the total value of supply then GST will be @12% (SGST 6% + CGST 6%).

Activity of Composite supply of goods and services if supply of goods is below 25% out of total value of supply then GST will be NIL in consonance with entry No. 3A of Notification No.12/2017-CT (R) dated 28.06.2017 and if more than 25% of the total value of supply then GST will be @12% in consonance with entry No. 3(iii) of Notification No. 11/2017-CT (R).

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:-

2. Whether the applicant is entitled to the benefit of exemption under entry 3 A of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017, as amended? If not, what is applicable rate of tax?

(a) Composite supply of goods and services where supply of goods is below 25% out of total value of supply then GST will be @ NIL.

(b) Composite supply of goods and services where supply of goods is more than 25% of the total value of supply then GST will be @12% (SGST 6% + CGST 6%).