Shanti Prime Publication Pvt. Ltd.
Classification of service—Rate of GST—Whether the service will be classified as works contract or as composite supply—In the instant application the question before authority is that whether “the Supply of immovable property or supply of goods and services under a single contract to be construed as composite supply or not”
Held that— It is a big project and has a permanent location. Such a plant would, therefore, have an inherent element of permanency.
Further, here the output of the project i.e the power would be available to an identifiable segment of consumers. Thus, this output supply would involve an element of permanency for which it would not be possible and prudent to shift base from time to time or locate the Plant elsewhere at frequent intervals.
The project would be using goods which would be imported. Are such high end equipments frequently dislocated? Would there not be damage to the materials if moved places frequently and if so, would it perform as effectively as it would have when without damage? The questions itself would give the answers.
The definition of the word "Commissioning" as found in the agreement brings out the enormity of the scale of operations and how the transaction would fall in the scope of an immovable property.
An overview of all above makes us observe that the impugned transaction for supply of the Solar Power Plant which includes engineering, design, procurement, supply, development, testing and Commissioning is a "works contract" in terms of clause (119) of section 2 of the GST Act.
Ruling— The plants in question were not immovable property so as to be immune from the levy of GST duty - Since the transaction is treated as a "works contract" and not as a "composite supply" , there would be no relevance of "principal supply". And therefore, there arises no occasion to answer the question as to what would be the "principal supply" in the impugned transaction - In the absence of any documents before us, we would not be able to deal with the issue of benefit of concessional rate of 5% of solar power generation system and parts thereof.  2 TAXLOK.COM 287 (AAR-Maharashtra)