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Installing & Maintaining Surveillance system to be treated as composite supply of works contract under GST

March 11, 2019[2019] 103 123 (AAR - MAHARASHTRA)

GST : Set up of a comprehensive CCTV based city surveillance system for city of Pune and Pimpri-Chinchwad which includes designing, development, implementation and maintenance by applicant dealer does result into installation/commissioning of immovable property wherein transfer of property in goods is involved in execution of contract and thus 'Surveillance Project' is a works contract as defined in section 2(119) of CGST Act and is supply of services as per 6(a) of Schedule II of CGST Act and therefore, the amount received for supply of services post GST are taxable under provisions of CGST Act

• However, contract is not related to any original work and is in nature of composite supply of Works Contract. Hence, activity of applicant is nothing but a composite supply of Works Contract, not being original works and they will be covered under Sr. No. 3, item no. (ii) of Notification No. 11/2017/Central tax (Rate), dated 28-6-2017 as amended by Notification No. 1/2018/Central tax (Rate), dated 25-1-2018 and attract 18 per cent GST (9 per cent each of CGST and SGST).

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