Q. 215 A workcontract gst registered dealer purchase of goods iron and cements sales two types transaction 1.purchases of iron and cements after used to workcontract purpose 2.purchases of iron and cements after used to sales to b2b customers purpose. Question: Dealer above two types sales transactions workcontract supply or composite supply treatment in gst act ?

Ans. Analysis of composite supply: A composite supply comprises of: · Two or more taxable supplies · Are naturally bundled · One of which is a principal supply Further, if consumers expect such services as a package, the majority of service providers providing similar bundles of services and nature of the services are naturally bundled then it will be termed as composite supply. However, the above-mentioned services seem to be supplied independently and hence, these cannot be composed as composite supply. Analysis of works contract: Section 2(119) of the CGST Act, 2017 “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.” Under GST, “works Contract” has been restricted to any work related to an “Immovable Property”. Further, para 6 (a) of Schedule II of the CGST Act, works contracts as defined in CGST Act, shall be treated as a supply of services. Thus, there is a separate marking of a works contract as a supply of service under GST. It is advised to take a detailed opinion to have better clarity.

Q. 214 One of the client received from gst adt-02 under audit report section 65(6) . audit findings resulted into excess claim itc by client. Question: Dealer notice received after replying procedure ?

Ans. If the liabilities mentioned in the form ADT-02 are genuine then you need to pay the same at the earliest. If the demand raised in the form is not true and you are willing to object then you need to communicate the same. In this case you need to take detailed opinions to make your case stronger.

Q. 213 I have to start business of flour mill. in which we will do flour grinding after an order received from customer. so according to my view it is not pre packed. but we have printed the packing material for delivery with all required content. so is it marked as per Labeled. is GST applicable on this transaction ?

Ans. We understand that in terms of flour grinding the grains belong to you, the above transaction is the composite supply of services being provided to the customers. Such a transaction falls under the definition of supply under the GST Act. Further, in case of starting of business, a certain threshold needs to be crossed in order to get registered under GST. Therefore, in case the business is not registered under GST, you are not required to charge GST on the above supply. For packaging guidelines- please follow Legal Metrology Act, 2009. Some clarificatory FAQ’s have been attached for your reference.