Advance Ruling- The present application has been filed by the applicant, seeking an advance ruling in respect of the following questions.

1. Whether arrangement for overhaul and repair of engines are "composite supply"?

2. Whether "principal supply" in overhaul and repair of engines is 'services'?

3. And resultantly, whether the rate of tax (GST) for all supplies (consisting of parts/ sub assemblies and repair services) is 18%?

The Applicant is a manufacturer of diesel engines and natural gas engines, and power generation systems i.e. Gensets. In addition to this, the applicant also undertakes the activity of overhaul and repair of engines belonging to customers and as a part of this overhaul and repair activity, the applicant is generally required to render various services and supply different parts/sub-assemblies to its customers. 

The applicant is contemplating entering into an agreement with Oil and Natural Gas Corporation Limited (ONGC) for overhaul and repair of engines and sub-assemblies and has submitted that the subject application is made in respect of the proposed transaction to be undertaken as per the Tender issued by ONGC on the basis of which the applicant will be entering into an Agreement with ONGC.

The applicant has contended that:

i) Arrangement for overhaul and repair for ONGC is "composite supply";

ii) The "principal Supply" is that of 'service' and

iii) Consequently, the rate of tax (GST) for all supplies (consisting of parts/sub-assemblies and repair services) is 18%

The applicant has itself admitted that the impugned supply can be sub divided into 4 types of supplies out of which it wants this Authority to consider only 2 types of supplies for decision. In other words, it means that the supply under the impugned Tender cannot be considered as a single composite supply of goods and services or both which are naturally bundled because the applicant itself has divided the Tender into 4 different supplies.

Such division of the single Tender to answer particular situations and ignore other situations will not be the right way to go forward and therefore this Authority will not be able to answer the questions raised by the applicant. 

Held that- None of the three questions are answered.