The Gujarat Authority of Advance Ruling (AAR) ruled that 18% GST is applicable on “Supply, Testing and Commissioning of 160 TR Chilled Water Plant”.
The applicant, M/s Air Control and Chemical Engineering Co. Ltd is a public limited company working under the Trade Name “Air Control and Chemical Engineering Co. Limited”, more popularly known as “ACCEL”, having a Factory at Barejadi, Gujarat.
They are registered under GST Act, 2017. They are engaged in the manufacture and supply of various Refrigeration Compressors, Refrigeration Compressors’ spares, Industrial Fans and Blowers, Industrial Fans’ spares, Refrigeration systems and HVAC equipment.
The applicant has sought for an advance ruling in respect of the clarification in details is sought with regard to the GST rate applicable regarding the “Supply, Testing and Commissioning of 160 TR Chilled Water Plant to Naval Dockyard (Visakhapatnam).
Further, in respect of clarification in details is sought with regard to the HSN/SAC code applicable regarding the “Supply, Testing and Commissioning of 160 TR Chilled Water Plant” to Naval Dockyard (Visakhapatnam).
Also, the advance ruling was sought in respect of clarification is also sought on applicability of the Notification No. 01/2017-IT (Rate), S. No. 252 (Any Chapter) whether Chillar Water Plant may be categorised as “Any Parts” and subject to 5% GST under HSN 8906.
The coram consisting of Sanjay Saxena and Mohit Aggarwal ruled that the “Supply, Testing and Commissioning of 160 TR Chilled Water Plant” to Naval Dockyard (Visakhapatnam), is a composite supply with the principal supply of goods viz. ‘160 TR Chilled Water Plant’/ ‘Chiller’ falling under Chapter sub-heading No. 8418 10 10 and the applicant is liable to pay 28% GST till July 26, 2018, and 18% from July 27, 2018, on said complete supply of goods and services.
The AAR while addressing another issue ruled that the “Supply, Testing and Commissioning of 160 TR Chilled Water Plant” to Naval Dockyard (Visakhapatnam), is a composite supply with the principal supply of goods viz. ‘160 TR Chilled Water Plant’/ ‘Chiller’ falling under Chapter sub-heading No. 8418 10 10.
“No exemption Notification issued under GST, which provides GST exemption in respect of Supply of 160TR Chilled Water Plant in question to the Naval Dockyard, Visakhapatnam, an Indian Naval Ship Repair Organisation of Indian Navy,” the AAR said.
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