TN AAR says Fire Protection System Installation Constitutes a Works Contract

The Tamil Nadu Authority for Advance Ruling held that the supply, erection, testing and commissioning of a fire protection system constitutes a composite supply under Section 2(30) of the CGST Act and a works contract under Section 2(119). Since the system becomes a permanent part of the building and cannot be removed without substantial dismantling, it is treated as immovable property. The activity is classified under SAC 9954 and attracts GST at 12%. The Authority also rejected the applicant's claims for concessional rates under specified entries of the relevant rate notifications.