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.