The Authority of Advance Ruling (AAR) Maharashtra came up with a ruling that clarifies that immovable properties with no distinct goods and services will attract Work Contracts. The said ruling comes into a case where Prasa Infocom & Power Solutions Private Limited is the applicant. And it is engaged in the business of providing data center construction and contracting services.
As per the details provided in the appeal, the Indian Institute of Tropical Meteorology (IITM) has contracted M/s Cray Inc. for the supply of high-performance electronics solutions especially computing solutions with its maintenance, along with preparation and maintenance work of Data Center.
For the preparation and maintenance of the Data Center portion of the work, M/s Cray subcontracted the applicant Prasa Infocom & Power Solutions Private Limited through the contract for the center project for the Ministry of Earth Sciences at Pune.
The Applicant reached AAR seeking an advanced ruling to confirm, whether the good’s supply and services 
In GST model Law separate provisions have been prescribed to determine the time of supply of goods and services. Liability for GST (Goods and Services Tax) will. Read more by the applicant to Cray Inc. (Cray) comes under “works contract” as stated under Section 2(19) of the CGST Act, 2017.
The Official Bench stated that “in the event, the application is not reflected, from the definition of Works Contract under the GST Law, it is clear that works contract is applicable only in immovable properties for GST purpose and where the value of goods and services are not distinct and in the subject case, a perusal of the copy of agreement/documents submitted by the applicant reveals that the value of goods/equipment is clearly distinct and separated from the value of services. Therefore, their project work is not classifiable under the Works Contract”.
The bench/ authority consist of A.A. Chahure and P. Vinitha Shekhar agreed with all the submissions of the jurisdictional officer and ruled that the supply of goods and service by the Prasa Infocom & Power Solutions Private Limited to Cray Inc. does not come under the definition of “works contract” which is clearly stated under Section 2(19) of the Central Goods and Services Tax Act, 2017 
Get to know about GST levy terms on disposal of the company’s capital goods under the CGST Act 2017. Also, we mentioned GST on the disposal of capital assets, if no ITC is claimed on capital goods. Read more.
