Page 98 - GSTL_27th August 2020_Vol 39_Part 4

424 GST LAW TIMES [ Vol. 39
3.4 The invoices were issued by the applicant charging therein tax @
18% considering the supply of furniture as composite supply of furniture, where
item-wise price of furniture was charged in the invoice.
4. Questions raised before the authority :
4.1 Whether the work relating to “supply, installation and fixing of cus-
tomized furniture in a building” is composite supply of goods or in the nature of
works contract?
4.2 What is applicable rate of GST on the above supply, if it is supply of
goods or supply in the nature of works contract?
5. Record of personal hearing :
5.1 Shri S. Krishnan, Chartered Accountant - Authorized Representa-
tive of the applicant appeared for personal hearing on behalf of the applicant and
reiterated the submissions made in the application.
5.2 The applicant states that The contract placed by Capital Project
Administration - a Department of Govt. of Madhya Pradesh, the awarding of
contract is of the view that the same is of the nature of works contract as per Sec-
tion 2(119) of CGST Act and the concessional rate of tax of 12% (6% CGST & 6%
SGST) is applicable as per Notification No. 11/2017-Central Tax (Rate), dated
28-6-2017 and the Notification No. 20/2017-Central Tax (Rate), dated 22-8-2017.
5.3 As per S. No. 1 of Heading 9954 (Construction Services) of Notifica-
tion No. 11/2017-Central Tax (Rate), dated 28-6-2017 amended from time to time,
the rate of tax is as under :-

S. Chapter, Description of service Rate Condition
No. Section or (per
Heading cent.)
2 Section 5 Construction services
3 Heading (vi) Composite supply of 6% Provided that
9954 (Con- works contract as defined in where the ser-
struction clause (119) of section 2 of the vices are supplied
services) Central Goods and Services to a Government
Tax Act, 2017, provided to the Entity, they
Central Government, State should have been
Government, Union Territory, procured by the
a local authority or a govern- said entity in rela-
mental authority or Govern- tion to a work
ment Authority by way of con- entrusted to it by
struction, erection, commis- the Central Gov-
sioning, installation, comple- ernment, State
tion, fitting out, repair, mainte- Government,
nance, renovation, or alteration Union territory or
of - local authority, as
(a) a civil structure or any the case may be.
other original works meant
predominately for use other
than for commerce, industry,
or any other business or pro-
fession;
(b) …………..

GST LAW TIMES  27th August 2020  98