Page 163 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SAN ENGINEERING & LOCOMOTIVE CO. LTD. 409
such supplies are naturally bundled and supplied in conjunction
with each other in the ordinary course of business and one of such
supply is a principal supply, then such supply shall be treated as
supply of principal supply.
(g) The applicant also submits that Board vide Flyer No. 4, dated 1-1-
2018 has laid down some illustrative indicators in determining the
bundling of services in ordinary course of business which are -
• There is a single price or the customer pays the same amount,
no matter how much of the package they actually receive or
use.
• The elements are normally advertised as a package
• The different elements are not available separately
• The different elements are integral to one overall supply - if
one or more is removed, the nature of the supply would be
affected.
(h) The applicant also submits that in the given facts there is separate
value for ‘supply of power packs’ and ‘installation and commission-
ing service’ invoices are also required to be raised separately on
completion of such supplies; the applicant normally will not adver-
tise such ‘supply of power pack’ and ‘installation and commission-
ing service’ as package; the element of ‘supply of power pack’ and
element of ‘supply of installation and commissioning’ are separately
available in the said purchase orders; and the ‘supply of power
pack’ and ‘supply of installation and commissioning’ of the same
are not integral to one overall supply. Without ‘installation and
commissioning service’, the ‘supply of power packs’ can be affected.
(i) The applicant states that in view of the above submissions, as per
the purchase orders the supply of power packs with freight and in-
surance services supplied by the applicant has to be treated as
“composite supply” and “supply of installation and commissioning
service” as independent supply of service classifiable under SAC
9954 for the purpose of levying GST.
6. Regarding the applicable rate of GST, the applicant states that
(a) the supply of power packs with freight and insurance service
should be treated as “composite supply’ as defined in Section 2(30)
of CGST Act, 2017 and the supply of power pack being principal
supply, the same should attract IGST @ 5% upto 1-10-2019 as per Sl.
No. 241 of Schedule-I to the Notification No. 1/2017-I.T. (Rate), dat-
ed 28-6-2017 and post 30-9-2019 should attract IGST 12% as per Sl.
No. 205G of Schedule-II to the Notification No. 1/2017-I.T. (Rate),
dated 28-6-2017 as amended read with Section 8(a) of CGST Act,
2017, and
(b) the supply of installation and commissioning of power packs
should be treated as independent supply of service classifiable un-
der SAC 9954. The same should attract IGST @ 18% in terms of Sl.
No. 3 of Notification 8/2017-Integrated Tax (Rate), dated 28 June,
2017 as amended.
GST LAW TIMES  21st May 2020  163