Shanti Prime Publication Pvt. Ltd.
Composite Contract — The Applicant sought advance ruling on the two questions i.e (1) "Whether the contract, executed by them for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [works contract]?" and (2)"Whether the tax rate of 12% [CGST-6% + SGST-6%] is applicable to the above contract, in pursuance of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017?" Authority for Advance Ruling, Gujarat held that:— In the instant case, the applicant, being the successful bidder, got the single composite contract, but with three connected agreements for Supply of Materials, Erection & Civil Works respectively. All the three agreements were awarded to the applicant in response to a single tender notification & the general terms and conditions are commonly applicable to all the three agreements. The applicant is supplying the material and providing the erection of towers service and also civil works service. Therefore the contract entered by the applicant is of the nature of "indivisible' and squarely falls under the works contract, which is a service. The contract entered by the applicant is of the nature of 'indivisible' and squarely falls under the works contract, which is a service. The Applicant is not entitled for the benefit of concessional rate of GST @12% in terms of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017. 51 TUD 115 (AAR-GUJARAT)