SWATI DUBEY

The Applicant is engaged, in Construction, Erection, Commissioning and Installation of projects relating to Electrical Transmission Lines, Sub-Stations and Line Shifting. The Applicant has entered into contract with RUMS for construction of various Pooling sub stations which involves supply of all Transmission Line material and sub-station Equipments (excluding Power Transformers, it’s associated accessories and oil), Station Transformers, Fabricated, Galvanized substation Structures and other materials, with related civil works, erection work and testing / commissioning for construction of new 33 / 220 kV pooling sub-stations, transmission lines and feeder bay work on total turnkey basis. The scope of the contract also involves construction of 33/220kV pooling sub-station, Transmission Lines and Feeder Bay Work.

The Applicant sought Advance rling on following issues:
(i) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Badwar, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing shall fall?
(ii) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Barsita Desh, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – II) under World Bank Financing shall fall?
(iii) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Ramnagar Pahad, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – III) under World Bank Financing shall fall?
(iv) What shall be the applicable rate of CGST and SGST on the supply being made under the contract?

The applicant stated that as per RUMS, the rate of GST should be 5% since the work is part of evacuation infrastructure being exclusively for Solar Power, for a Solar Park and is being developed by Solar Project Park Developer.

However the work being done by the applicant is in the nature of a Composite Supply, since it involves supply of goods as well as services.

Further, the agreement involves construction of Pooling Sub-station on Turnkey Basis and falls under the definition of a “Works Contract” within the meaning of Section 2 of the CGST Act, 2017. 

Also the scope of work in all the three agreements are identical, accordingly, all the three agreements shall have the same classification for the purpose of taxation under the GST Laws.

Therefore HSN Code for the supply of composite service in the nature of Works Contract under the all the three agreements, shall be 9954 / 995423. The rate of CGST on the supply being made under the contract shall be 9% according to Notification No. 11/2017 – Central Tax (Rates).

CRUX: The HSN Code for the supply of composite service in the nature of Works Contract under the all the three agreements entered into with RUMS, shall be 9954 / 995423. The rate of CGST on the supply being made under the contract shall be 9% according to Notification No. 11/2017 – Central Tax (Rates)