Advance Ruling — Works contract service — The contractee awarded the Applicant contracts for supply of Tower Packages split up into two separate sets of contracts - one for supply of materials at ex-factory price (hereinafter the First Contract), and the other for supply of allied services like survey and erection of towers, testing and commissioning of transmission lines etc (Second Contract), which also includes inland/local transportation, in-transit insurance, loading/unloading for delivery of materials and storage of them at the contractee's site. The contractee agrees to reimburse the actual GST payable, except on the price component for inland/local transportation, in-transit insurance and loading/unloading. The applicant raises separate freight bills on the contractee as per the rate schedule annexed to the Second Contract. The applicant wants a ruling on whether he is liable to pay tax on such freight bills. Authority for Advance Rulings, West Bengal held that:—The applicant supplies 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 at 18% on the entire value of the composite supply, including supply of materials, freight and transportation, erection, commissioning etc.[2018] 51 TUD 057 (AAR-WB)