The question now arises as to whether individual supplies can be treated as composite supplies under multiple contracts. Article 2 (119) of the CGST Act defines the employment contract as follows: 7. Total delivery of works contracts within the meaning of Article (119) of Article 2 of the Central Goods and Services Tax Act 2017, which mainly involve earthworks (i.e. more than 75% of the value of the works contract) made available to the central government, the government of the State, the Territory of the Union, the local authority, a government agency or a government agency. `a contract in which the essential design originates from or is delivered by the contractor and not the owner, so that the legal responsibility for the design, suitability and execution of the work ceases after completion. with the entrepreneur .. The term “turnkey” is treated as if it simply refers to the responsibility of design as well as that of the contractor. 4. Services by means of pure contracts of employment for the construction, construction, commissioning or installation of original work relating to a single residential unit that is not part of a residential complex. The construction contract is a contract in which the transfer of ownership of goods (whether as property or in any other form) is involved in the performance of such a contract and includes the contract for the construction, construction, construction, installation, modification, repair, modification or commissioning of immovable property. The taxation of works contracts in the old indirect taxes, including VAT, CST and service tax, was complex. Since the service element and the transfer of ownership of the goods are involved in a contract of employment and services, there has always been a dispute over the relationship in which it should be taxed under the services tax and various VAT laws of different states. Composition systems and other deductions have been provided for in various VAT laws.
Notices of reduction and various valuation methods have also been given in the service tax law. With the introduction of the GST in India, lawmakers have tried to solve the problems and make the law as simple as possible. Mixed supplies: two or more individual supplies of goods or services or a combination thereof effected by a taxable person in connection with each other at a single price, where that supply does not constitute a composite supply: also Communication No 11/2017 Central tax (rate) of 28 June 2017, as amended, provides for different GST rates for different types of construction contracts, which are as follows: The GST Act does not define the term as a turnkey contract. According to the general definition of the term, “a turnkey project or operation (also written turnkey) is a type of project designed in such a way that it can be sold as a finished product to any buyer”. Figure: When goods are packed and transported with insurance, the delivery of goods, packaging material, transport and insurance is a composite delivery and the delivery of goods is a main service. It can therefore be inferred from the foregoing that, in the case of a turnkey contract relating to a works contract, it is not necessary for all goods to be transferred in accordance with the works contract. Property that is not transferred under the contract of employment and services must be treated separately and in accordance with the provisions of the GST Act. 1. Supplies of composite goods and services in respect of which the value of the supply of goods does not exceed 25 %. the value of such composite supply made available to the central government, the government of the State or territory of the Union or a local authority or a governmental authority or a governmental body in the course of an activity related to a function assigned to a panchayat in accordance with Article 243G of the Constitution or in connection with a function assigned to a municipality under Article 243W of the Constitution. It should be noted that, in some cases, the contractor enters into two different contracts with him, one for the supply of materials and the other for the provision of services. Now the question arises: are goods delivered in this way treated as part of an employment contract and taxed accordingly or should the contracts be combined in a construction contract? 4.
definition of composite delivery according to section 2 (30) of the GST Act, 2017: Let us now discuss the treatment of construction contracts, composite contracts and turnkey contracts in accordance with the provisions of the GST. Turnkey means something that is ready for immediate use and is usually used in the sale or delivery of goods or services. The word refers to the fact that when the customer receives the product, he only has to turn the ignition key to make it operational, or that the key only needs to be handed over to the customer. .