AAR treats fire protection system work as composite supply
In short
An AAR has said that supply, erection, testing and commissioning of a fire protection system counts as a composite supply and a works contract service. Taxscan says this led to the denial of a 5% GST rate.
What the reporting says
An AAR held that the supply, erection, testing and commissioning of a fire protection system constitutes a composite supply and works contract service. Taxscan’s summary says the ruling rejected the claim for a concessional 5% GST rate. The decision affects how this kind of project is taxed and billed under GST.
Why it matters
An Advance Ruling Authority held that supply, erection, testing and commissioning of a fire protection system is a composite supply and works contract service. The ruling matters for contractors and customers because it affects GST treatment and project costing.