Supply of goods—1. The applicant submitted that explosives procured by the applicant for blasting activity are stored only in licenced premises as stated in licence, termed as 'magazine'; that prior to carrying out blasting activity, client inform the applicant number of holes to be charged at the site; that prior to initiating blasting activity, applicant with the help of shot firer determines the quantity of explosives to be filled in each hole and as per requirement, applicant fills every hole with approximately same quantity of explosives and thereafter each hole is connected to each other via detonators and/or detonating fuse and safety fuse; that each hole is connected to each other and network is created in such a manner that each hole is blasted in the manner and sequence as required.
2 The applicant further submitted that during the entire blasting activity, explosives are neither handed over to the client nor is it in possession of client; that any quantity of explosives or other material left after carrying out blasting activity is transferred back to the Magazine of the applicant.
3 The applicant has further stated that it is imperative to decide whether applicant is carrying out supply of goods or supply of services. The applicant has stated that during the entire activity of blasting, applicant has been granted right to carry out only blasting at the site only; that client is not qualified person to possess explosives and thus it is clear that applicant has not transferred title to goods used in blasting activity to its client and therefore the applicant has the view that blasting activity carried out by it shall be treated as 'supply of service'.
4 On the basis of above facts and submissions, the applicant has sought ruling on following question-

1. Whether the blasting activity carried out by the applicant is to be considered as a 'supply of goods' or 'supply of service' ?

Held that :- The blasting activity carried out by M/s. Khedut Hat, Moti Bazar, Gondal, Rajkot- 360 311(GSTN No. 24AACFK1980FIZL) is a 'composite supply' of goods and services and shall be covered by Section 2(30) and Section 8(a) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017.[2018] 3 TAXLOK.COM 47 (AAR-Gujarat)