Page 160 - GSTL_21st May 2020_Vol 36_Part 3

406 GST LAW TIMES [ Vol. 36
2020 (36) G.S.T.L. 406 (A.A.R. - GST - Kar.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. M.P. Ravi Prasad, Member (State Tax) and Shri Mashhood Ur Rehman
Farooqui, Member (Central Tax)
IN RE : SAN ENGINEERING & LOCOMOTIVE CO. LTD.
Advance Ruling No. KAR ADRG 21/2020, dated 23-4-2020
Installation and Commissioning service - Installation and commission-
ing of power packs can be carried out by recipient either by themselves or they
can avail the services from any other supplier of service - Hence, supply of in-
stallation and commissioning not a part of the supply contract of power packs
but an independent service supplied by applicant. [para 8.3]
Value of supply - Freight and insurance charges - Mode of delivery be-
ing by road on freight pre-paid door-delivery basis, applicant has to transport
the goods and deliver the power packs to the recipient - Hence, freight and
insurance charges are part of the value of supply of power packs, supply con-
tract being a contract for supply of power packs and the value of the contract is
the sum total of the value of power pack plus all charges charged to the recipi-
ent for anything done till goods are delivered to recipient - Supply of power
packs and supply of freight and insurance services involved in such power
packs to be treated as “supply of power packs” and applicable tax related to
such power packs and the time of supply would apply to the entire transaction
as it applies to the “supply of power packs”. [paras 9.1, 9.3]
Ruling partly in favour of assessee
REPRESENTED BY : Shri K.S. Kamalakara, Cost Accountant, for the
Assessee.
[Order]. - M/s. SAN Engineering & Locomotive Company Limited,
Whitefield Road, Bengaluru 560048 (hereinafter referred to “the applicant”) and
having a GSTIN 29AAECS5331H1ZA, has filed an application for Advance Rul-
ing under Section 97 of the CGST Act, 2017 read with Rule 104 of CGST Rules,
2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules,
2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the
CGST Act and the KGST Act.
2. The applicant is a company registered under the provisions of the
Goods and Services [Tax] Act, 2017. The applicant states that he is engaged in the
business of manufacturing power packs and supplying installation and commis-
sioning service.
3. The applicant has sought advance ruling in respect of the following
questions :
(1) Whether the supply of powerpacks, freight and insurance service
and commissioning/installation services as per the Purchase Order
08/16/2730/1838/f, dated 5-11-2016 has to be treated as “Compo-
site Supply” as defined in Section 2(30) of CGST Act, 2017 read with
Section 8(a) of CGST Act, 2017 or freight and insurance service and
commissioning/Installation can be treated independent of supply of
power packs given that installation and commissioning takes place
after 4-5 months of supply of power packs.
GST LAW TIMES  21st May 2020  160