Page 100 - GSTL_27th August 2020_Vol 39_Part 4

426 GST LAW TIMES [ Vol. 39
“works contract” as defined in clause (119) of Section 2 shall be treated as supply
of service.
5.9 As per Section 2(30) of CGST Act. “composite supply” means a sup-
ply made by a taxable person to a recipient consisting of two or more taxable sup-
plies of goods or services or both, or any combination thereof, which are naturally
bundled and supplied in conjunction with each other in the ordinary course of
business, one of which is a principal supply.
Illustration : Where goods are packed and transported with insurance, the
supply of goods, packing materials, transport and insurance is a composite sup-
ply and supply of goods is a principal supply.
5.10 As per Section 8(a) of CGST Act, the tax liability on a composite or
a mixed supply shall be determined in the following manner, namely -
(a) a composite supply comprising two or more supplies, one of which
is a principal supply, shall be treated as a supply of such principal
supply,
(b) ……….
5.11 As per Section 10(1)(d) of IGST Act, the place of supply of goods,
other than supply of goods imported into or exported from India, shall be as un-
der :-
“(d) where the goods are assembled or installed at site, the place of sup-
ply shall be the place of such installation or assembly”.
5.12 As per the interpretation of law and the facts of the case, the sup-
ply, installation, fixing of customized furniture for newly constructed Mantralaya, Bho-
pal is composite supply of goods within the meaning of Sections 2(30) and 8(a) of CGST
Act, where the supply of furniture is a principal supply and installation/fixing thereof is
ancillary supply. The rate of tax of principal supply will be applicable to compo-
site supply. The supply of furniture, which may or may not be customized is
principal supply where the rate of tax is 18% (9% CGST & 9% SGST) as per Sl.
No. 438 of Schedule-III of CGST Act under HSN 9403 with effect from 15-11-
2017. The supply of furniture which may or may not be customized and the in-
stallation thereof are naturally bundled and as per business practice, the furni-
ture is supplied in conjunction with their installation and fixing. In the appli-
cant’s view point, the supply of furniture and the installation and fixing thereof
is composite supply of goods and the rate of tax of furniture which is principal
supply is applicable to composite supply.
5.13 As per the contract executed with CPA, item-wise prices of furni-
ture in the tender were required to be submitted which were approved by the
contractee CPA. The items mentioned were such as Main Table + ERU, Back
Runner for Minister etc. The invoice issued by the applicant to the CPA was item-wise
and consolidated transaction price was charged. The installation/fixing charges are not
separately charged in the invoice, nor these charges are required to be charged item-wise.
5.14 As per Section 10(1)(d) of IGST Act, where the goods are assem-
bled or installed at site, the place of supply shall be the place of such installation
or assembly. It means that installation or assembly of goods is considered as
supply of goods.
5.15 As per Section 2(119) of CGST Act, “works contract” means a con-
tract for building, construction, fabrication, completion, erection, installation,
fitting out, improvement modification, repair, maintenance, renovation, altera-

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