Kathmandu: The long-delayed Ghunsa Khola Hydropower Project, which had remained stalled for years in studies, promoter changes, and procurement procedures, has finally shown signs of moving toward construction. Remit Hydro Limited has issued a Notice of Intent to Award the Contract (NOI) for the project’s main EPC package, selecting an Indo-Nepalese joint venture for the contract. The company has…

Facts: A contract was awarded for supply of Engineering, Procurement & Construction (EPC) for establishment of Integrated Cryogenic Engine & Stage Test Facility (ICET) wherein both goods & services are supplied.

Contention: Advance ruling was sought to determine whether the above contract be construed to be composite supply under GST?

Ruling: Yes, the above contract is a composite contract under GST.

Explanation: Under GST, composite supply is a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both which are naturally bundled and supplied in conjunction with each other in ordinary course of business.

In the case under review, scope of work involves planning, documentation, site management, procurement of equipment, civil, electrical and structural works, etc., followed by commissioning of the entire system to have an operational Integrated Cryogenic Engine & Stage Test Facility for the satellite launch program.

Hence, mere supply of equipment/instruments is not done but the same is integrated, erected and finally commissioned at Integrated Cryogenic Engine & Stage Test Facility. Also, the invoicing for supply of equipment/instruments and services is indivisible.

Ador Welding Ltd gives an extensive variety of engineering procurement and construction administrations offering attainable answers for its clients. Our EPC group can esteem include, given their broad presentation to plan, construction, manufacture and field engineering, with an ideal utilization of innovation and engineering to client's needs. Ador has additionally great profile and history as EPC Industries. Ador Welding Ltd is in the matter of Engineering and construction of Process plants, Foundation ventures, Substance, Compost, Oil and Gas, Petrochemicals, Power ventures with a mission to Accomplish Acknowledgment and development through Consumer loyalty, Worker Inspiration, and Creative Approach. Ador is endorsed by all major prestigious PMC and EPC contract in India and abroad identified with oil and gas, refinery, petrochemicals, chemicals, tank cultivate, terminals, steel plants, control, nourishment, pharma and process industries sections with solid Venture Engineering and Administration Skill. Ador likewise builds up a Quality Control Manual for each task that subtle elements the quality exercises of all Ador faculty and subcontractor staff, if material. Ador is one of the best EPC companies on the planet. The engineering procurement construction process stream is clarified with some legitimate subtle elements.

Procurement Administrations:

Ador Welding Ltd has gifted procurement and contracts pros in its India office. Ador India's procurement pro's work with Ador's different business lines the world over to boost extend productivity for the Customer. The group's abilities include:

1.       Facilities Procurement.

2.       Material Arranging and Control.

3.       Purchasing.

4.       Shop and office Facilitating.

5.       Subcontracting.

6.       Supplier Ability and Limit Assessments.

7.       Supplier Execution Estimation.

8.       Traffic and Coordinations Support.

9.       Warehousing.

Ador Welding Ltd has built up a territorial provider and contractor base for capital task sourcing prerequisites on the neighborhood and worldwide projects. Ador Welding Ltd can give protected, dependable and financially savvy answers for products and ventures.

Construction Administrations:

Ador has far-reaching construction execution capacities over a wide range of industries. Ador can self-perform construction or go about as the construction chief on both expansive and little-measured projects. Ador's worldwide reach enables the organization to send construction assets around the globe and regularly in remote areas to meet the construction necessities of its Customers. At the point when Ador fabricates a task utilizing a self-perform approach, construction assets are straightforwardly utilized by the organization. Self-perform construction gives Ador greatest control of basic way and quick track construction plans, additionally giving cost, execution, and quality advantages to our Customers. Ador gives construction administration benefits on different projects and administrations incorporate construction arranging, subcontractor capability and assessment, subcontractor administration, construction hardware arranging and administration and construction engineering support. Ador construction staff in India underpins field construction with field material administration and warehousing, field QA/QC administration, turnover, and dispatching, preparing and administration, and meeting administrative consistence arranging and execution.

The scope of administrations under engineering and construction incorporates the accompanying:

1.       Practicality examines and reasonable outline.

2.       Configuration engineering.

3.       Definite engineering.

4.       Procurement.

5.       Construction.

6.       Task administration.

7.       A workshop, hardware, and creation bolster.

8.       Pre-authorizing, appointing and startup.

9.       Alliancing/Consortium contract execution.

Ador Welding Restricted is completely outfitted with in-house labor and programming's to perform:

1.       Plan Ideas utilizing PV World class.

2.       Warm Outline, Utilizing HTRI.

3.       Mechanical Outline, Utilizing PV World class.

4.       Instrumentation Outline.

5.       Auxiliary Plan utilizing STAADPRO.

6.       Code Counts Utilizing PV Tiptop.