Ramesh, a registered supplier in Delhi, enters into a contract to supply and install an air conditioning system in a Royal Garden Hotel located in Punjab. The air conditioning system is assembled at the site using variou

(i) Nature of Supply: Goods or Services? This is a works contract involving supply of goods along with installation, testing, and civil work, which makes it a composite supply. As per Section 2(119) of the CGST Act, a works contract involving immovable property is treated as supply of services. Hence, this is a supply of service. (ii) Place of Supply: As per Section 12(3)(a) of the IGST Act, when the supply involves immovable property, the place of supply is the location of the immovable property. Here, the hotel (immovable property) is located in Punjab. So, the place of supply is Punjab. (iii) Nature of Supply and Tax to be Charged: Mr. Ramesh is registered in Delhi and the place of supply is Punjab. Since supplier and place of supply are in different States, this is an inter-State supply. Therefore, IGST is chargeable.