Does installation service where usage of a chemical is essential, qualify as composite supply?

ADVANCE RULING NO. GUJ/GAAR/R/14/2021
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2020/AR/44)
Date: 27.01.2021

B R I E F FA C T S

The applicant M/s. Trellborg Marine Systems pvt.ltd., 1702-1709, 17thfloor, B-Block, West Gate, YMCA club, S.G.Highway, Ahmedabad-380015 is engaged in the business of trading of products like fixtures, buoys, bollards,frontal frames and fascia pads which are made mainly from iron and steel,barring fascia pads which are made from plastics and these products are primarily used at port/jetty as support infrastructure.

2. The applicant has submitted that under the erstwhile Indirect taxregime, the applicant was subjected to the levy of Value Added Tax and Central Sales Tax (hereunder referred to as ‘VAT’ and ‘CST’ respectively); that theapplicant, being a trading entity, was not required to be registered under theCentral Excise legislation; that since, the classification under Gujarat VAT isnot derived by any Harmonized System of Nomenclature (‘HSN’) except for specific/few goods, classification adopted by Applicant was a subject matter ofdispute between VAT authorities and the Applicant; that under theclassification mechanism provided under Gujarat VAT legislation, there were two predominant rates of VAT in force viz. 5% (4% + 1% additional tax) and 15% (12.5% + 2.5% additional tax) and for the former category, goods were specifically enlisted whereas the latter tax rate applied as a residual tax rate onall other goods; that in the erstwhile regime, the applicant had classified each product under its specific category provided under 5% tax rates but this classification was disputed by the VAT Department, without providingsufficient grounds for substantiation; that subsequent to the change in the Indirect tax legislation and considering the way in which the manner forclassifying goods and services has undergone a change, they seek tounderstand the correct classification of their products under the GST regime.The applicant has stated that in view of this, they wish to have clarity onclassification of certain products dealt in by the Applicant and based on the above facts, they have raised the following questions seeking Advance Ruling on the same:

Question-1(Part-A) –What would be the classification of the following products under GST and applicable tax rate thereon in accordance with Notification No.01/2017 dated June 28, 2017 (as amended).

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