? Giriraj Renewables Pvt. Ltd. (Karnataka) [2018-VIL-36-AAR]
EPC contract for setting up of solar power plant, wherein supply of PV modules is the dominant part of the contract, would not constitute ‘composite supply’ on the basis that the PV modules are supplied to the owner on high sea sale basis and supply of other goods and services are not naturally bundled as the owner may procure major equipment on their own. (Unlike the ruling of the Maharashtra AAR in Giriraj Renewables Pvt. Ltd. [2018-VIL-20-AAR], the Karnataka AAR in this case has not given any findings on whether the remaining supply of goods and services under the EPC contract would constitute works contract service.)
? Skilltech Engineers & Contractors Pvt. Ltd. (Karnataka) [2018-VIL-39-AAR]
Separate contracts for supply of goods, services and civil works awarded to a contractor under a single bid/tender for erection of towers would be an ‘indivisible’ works contract. Statutory body, corporation or an authority created by the Parliament or a State Legislature is neither ‘Government’ nor ‘local authority’. Therefore, concessional rate of GST @ 12% as per Notification No. 24/2017-Central Tax (Rate) dated 21.09.2017 would not be applicable to works contract awarded by such entities. (With effect from 13.10.2017, the concessional rate of GST on works contract services for construction of civil structure for use other than for commerce, industry or any other business or profession has been extended to Government Entities, provided such services are procured by the Government Entity in relation to work entrusted by the Central Government, State Government or local authority)
? Rajashri Foods Pvt. Ltd. (Karnataka) [2018-VIL-37-AAR]
The activity of transfer of a functional and independent unit with all the assets and liabilities would tantamount to transfer of a going concern. In terms of Notification No.12/2017-CT (Rate) dated 28.06.2017, the activity of transfer of a going concern would be considered as a service liable to GST at nil rate.
? Tathagat Health Care Centre LLP (Karnataka) [2018-VIL-40-AAR]
Rent payable towards leasing of premises by hospital for exclusively running Heart Care Centre and providing health care services would be liable to GST at applicable rate.
? Circular No. 3/1/2018-IGST dated 25.05.2018
Supply of goods prior to their clearance from the Customs bonded warehouse would not be subject to GST. IGST on the goods stored in Customs bonded warehouse would be levied and collected only when such goods are cleared for home consumption from the Customs bonded warehouse. The clarification would be applicable for supply of goods on or after 01.04.2018.
? Notification No. 11/2018-Central Tax (Rate) dated 28.05.2018
GST on supply of Priority Sector Lending Certificate (PSLC) payable by recipient of supply under reverse charge mechanism. (Vide Circular No. 34/8/2018-GST dated 01.03.2018 it was clarified that PSLCs are taxable goods liable to GST at the rate of 18%)
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