The Chhattisgarh Authority for Advance Ruling (AAR), ruled that Supply for providing services for design, engineering, supply etc of Highway Lighting System are installation services and is ineligible for 12% GST.
An Advance Ruling under Section 98 of the Chhattisgarh GST Act, 2017 sought by M/s HPL Electric and Power Limited, the applicant seeking an advance ruling in respect of whether the supply to be made by it to M/s. Adani Infra (India) Ltd (AIIL) for providing services for design engineering etc of Highway Lighting System as for the project of development, maintenance and management of four laning in the State of Chhattisgarh, can be classified under Entry 3(iv)(a) of Notification No. 1 1/201 7-Central Tax (Rate) and the benefit of concessional rate of GST of 12% can be availed in respect of said supply by Applicant to AIIL.
In the instant case, the Applicant has entered into an agreement with M/s. Adani Infra (India) Ltd for providing services for design, engineering, supply, testing at site, freight and transit insurance, erection, installation and commissioning and trial run of the Highway Lighting System.
The applicant contended that the work to be executed by the them is regarding the installation of Highway Lighting System and being part and parcel of the project of development, maintenance and management of 4 laning in the State of Chhattisgarh and being essential for completion of road. is classifiable under Entry 3(iv) (a) of Not. No. 11/2017-C.I. (Rate) hence, attracts the rate of GST of 12%.
A Two Member Bench of the Authority comprising Sonal K Mishra, Joint Commissioner and Rajesh Kumar Singh, Additional Commissioner observed that “The aforementioned supply to be made by the applicant to AIIL merits classification as “Installation services”, being electrical installation services of illumination for roads. The applicant is found ineligible to the benefit of tax rate of 12% as stipulated under entry No.3 (iv) (a) of Notification No. 1 1/2017 Central Tax (Rate).”
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