Page 162 - GSTL_21st May 2020_Vol 36_Part 3

408 GST LAW TIMES [ Vol. 36
Classifying the Freight & Insurance Charges under SAC 996793 in
the invoices they have charged 5% IGST and classifying the Com-
missioning/Installation charges under SAC 9954 in the invoices
they have charges 18% IGST. The applicant has produced the copies
of the invoices raised.
5. Regarding the grounds, the applicant submits as under :
(a) In the said Purchase Order placed by Integral Coach Factory, Chen-
nai to supply Power Packs and Installation & Commissioning of the
same in HS SPART, there is a component of ‘supply of goods’ and a
component of ‘supply of service’. The value for such supply of
goods and services are also separately mentioned in the said Pur-
chase Orders.
(b) There is doubt that such supply of Power Packs and the related
freight service and transit insurance are naturally bundled supply,
as they are supplied in conjunction with each other in the ordinary
course of business. Therefore, such supply of Power Packs with
freight & insurance has to be treated as “composite supply” in terms
of Section 2(30) of CGST Act, 2017. In the said supply, the Power
Pack being the principal supply, the GST rate applicable to principal
supply has to be applied for the purpose of levying GST in terms of
section 8(a) of CGST Act, 2017.
(c) Since such supply of Power Packs and installation & commissioning
of the same in HS SPART are not naturally bundled and supplied in
conjunction with each other in the ordinary course of business, the
‘supply of Power Pack’ as per requirement of M/s. Integral Coach
Factory, Chennai and ‘installation’ of the same are two different
supplies.
(d) The applicant submits that post such supply of Power Packs, the in-
stallation and commissioning of the same into HS SPART can be
carried out by M/s. Integral Coach Factory, Chennai either by
themselves or they can avail installation and commissioning service
from any other supplier of service. The supply of Power Packs and
the installation of the same in HS SPART are not in conjunction with
each other in the ordinary course or business.
(e) The applicant states that as per the said purchase orders, the receipt
of power packs at the premises of M/s. Integral Coach Factory,
Chennai and by inspection of the same, the supply of Power Pack
ends. As the supply of commissioning/installation takes place only
on receipt of the power packs at the premises of M/s. Integral
Coach Factory, Chennai and ends with certificate issued by the of-
ficer concerned after successful installation and commissioning,
hence the ‘supply of power pack’ and ‘installation and commission-
ing’ cannot be considered as “composite supply”. The applicant re-
produces the relevant provisions of Section 2(30) and 8 of the CGST
Act, 2017.
(f) The applicant states that it is clear from the provisions of Section
2(30) and 8 of the CGST Act, that where there is a supply by the reg-
istered person to recipient, which consists of two or more taxable
supplies of goods or services or both, or a combination thereof and
GST LAW TIMES  21st May 2020  162