Annual maintenance contracts is supply of Services under GST : AAR

Issue : Applicability GST on the AMCs for diesel and natural gas engines sold by it.

Held

The Authority for Advance Ruling (AAR), Maharashtra has held that the supply under annual maintenance contracts (AMCs) are a “composite supply” and classified them as service.

“It is submitted that the main object of the contract is to supply services and making available of parts/ components is ancillary to the same. Consequently, the principal supply of the transaction is ‘service’,”

Maharashtra Authority of Advance Ruling (AAR)

Cummins India Limited

Order No GST ARA -65/2018-19/B-161 Dated 19.12.2018

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