2018 (6) TMI 463 – AUTHORITY FOR ADVANCE RULING-RAJASTHAN – 2018 (14) G. S. T. L. 129 (A. A. R. – GST) – Classification of services – Rate of tax – works contract – contract for for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur (Rajasthan) Including Area Development on Turnkey Basis, and its Operation & Maintenance (O&M) for a period of 10 Years – correction and strengthening the channel for better performance – sub-contract – Government authority or not?
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Whether the nature of Services covered under Sl.no.3(vi)(a) of N/N. 11/2017 – Central Tax (Rate) dt. 28th June 2017 amended with N/N. 24/2017- Central Tax (Rate) dated 21.09.2017 and further amended with N/N. 31/2017-Central Tax (Rate) dated 13.10.2017? – What is the Rate of GST applicable for the Project? – If applicable rate of GST @12%, what is the rate of GST applicable on subcontractor leg?
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Held that:- The Jaipur Development Authority is found to be covered under the Government Authority and Services pr
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ing of GST Council held at New Delhi on 18.01.2018 Works Contract Services (WCS) provided by the sub-contractor to the main contractor; providing WCS to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity; will also attract GST at the rate as applicable to the main contractor – The GST leviable is GST @12% (i.e. CGST 6% + SGST 6%).
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The Services provided by M/s TPL – SUCG Consortium to Jaipur Development Authority under Contract awarded to them are covered under N/N. 11/2017 – Central Tax (Rate) dt.28th June 2017 (N/N. F.12(56)FD/Tax/2017-PM-49(S.T.) dt. 29th June 2017), amended with N/N. 24/2017-Central Tax (Rate) dt. 21st Sept. 2017 (N/N. F.12(56)FD/Tax/2017-90(S.T.) dt. 21st Sept. 2017) and further amended vide N/N. 31/2017 – Central Tax (Rate) dt. 13th Oct. 2017 (N/N. F.12(56)FD/Tax/2017-Pt-III-106(S.T.) dt. 13,h Oct. 2017 ) and GST @12% (i.e. CGST 6% + SGST 6%) is applicable on the services provided under t
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tation includes ground preparations, lining, embankment works, protection & prevention, and development of other peripheral structures, landscaping, etc. (b) Sewerage Interception, treatment and disposal – Local residents discharge untreated sewage in to the Nallah. This is proposed to be checked by intercepting the sewage from existing drains/sewer lines lyingwithin 0.5 km of the center of the Nallah, providing limited collection main (along the banks of the Nallah only) and putting up the treatment plant as detailed in later sections for treating such intercepted sewage and discharging treated effluent in to the Nallah. (c) Value Creation and Monetization – It is also proposed to prepare a comprehensive Business Plan along with land use plan and detailed Master Plan of the precious land areas reclaimed from Nallah sections and other existing land parcels in and around the Nallah. Primary objective of this exercise will be to highlight to the government significant value addition
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n of nearby agricultural lands. The Sewage Treatment Plants (STPs) which are to be constructed as part of the sewage treatment. As mentioned above the project focuses on enhancing the workability of the river and its better performance, hence, the need of having clean water in the river was necessary. This required treating the raw sewage, which is presently being deposited in the river. In line with that, laying of pipelines, construction of interception chambers and construction of STPs are the engineering solutions to have the desired clean water in the river. Project scope is to prepare a Master Plan of the Reclaimed Lands which will indicate the ways through which the commercial value of the land parcels surrounding the Nallah can be increased. The master plan is only a proposal for the development of the lands surrounded the nallah. The actual development of the lands is not the part of this Contract. In accordance, the contractual requirements a detailed Master Plan of Reclaimed
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rural area around Jaipur. Development of transport facilities like Mass Rapid Transport System (MRTS), Transport Nagar, and major sector roads. 3. The applicant's contention is that the Jaipur Development Authority is covered under the status of Government Entity: Definition of Government Entity: As per the notification no.32/2017-Central Tax (Rate) dated 13.10.2017, Government Entity means an authority or a board or any other body Including a Society, Trust, Corporation, (i) Set up by an Act of Parliament or State Legislature (ii) Established by any Government with 90per cent or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. Since, Jaipur Development Authority set up by an act of State Legislature vide Act No. 25 of 1982, Received the assent of the President on the 12th day of October, 1982 to carry out functions entrusted by Government of Rajasthan, it is covered
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other than for commerce, industry, or any other business or profession; 4.2 The scope of works covered in the project is the following. Enhancement of utility of the Dravyawati River (Amanishah Nallah) which is already existing and operating in its present state. The project scope is primarily the course correction and strengthening the channel for better performance. The Sewage Treatment Plants (STPs) which are to be constructed as part of the sewage treatment, laying of pipelines, construction of interception chambers and construction of STPs are the engineering solutions to have the desired clean water in the river. Project scope is to prepare a Master Plan of the Reclaimed Lands which will indicate the ways through which the commercial value of the land parcels surrounding the Nallah can be increased. The master plan is only a proposal for the development of the lands surrounded the nallah. The actual development of the lands is not the part of this Contract. Since the scope of wor
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personal hearing was given to applicant, Shri Rama Mohan Rao, (Senior Manager, F&A) and Shri Rajesh Tripathi (AGM) appeared as representative of applicant for personal hearing on 23.03.2018. During the PH they have submitted copy of contract agreement and relevant notification along with billing breakup. As they have sought 2 weeks" time to submit relevant case laws on the issue, a next hearing date was given to them. Further Shri Rajesh Tripathi (AGM) appeared for personal hearing on 06.04.2018. he has shown his inability to produce any case laws or citation regarding "Original Works". He has requested that the case may be decided on the basis of submission made earlier. 6.2 They have also submitted a copy of letter dated 10.10.17 and 08.11.17 issued by the Additional Director (R & DP), J DA, Jaipur under their letter, address to the Project Director, M/s TPL-SUCG Consortium (copy submitted by the applicant), in which it is submitted that the Rejuvenation of Am
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cope of the work duly defined in the work orders and it is apparently clear that all works area original works and duly covered under the Notification no. 24/2017-Central tax (rate) dated 21.09.2017 and The Jaipur Development Authority is covered under Governmental Authority as also defined in Notification no. 32/2017-Central tax (Rate) wherein "Governmental Authority" means an authority or a board or any other body, – (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per cent, or more participation by way of equity or control, to cany out any function entrusted to a Municipality under article 243 W of the Constitution. Issues to be decided : 7. The issue involved in this case is, whether Jaipur Development Authority is covered under the status of Government Authority/Entity or not? and the nature of Services provided under the contract are covered under Sl.no.3(vi)(a) of notification no. 11/2017 -Central Tax (Rate) dt.28
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nt of Jaipur as envisaged by the Department of Urban Development and Housing, Government of Rajasthan and to carry out function entrusted under Article 243G of the Constitution. 8.3 As per notification No. 11/2017-Central Excise (Rate) dated 28.06.2017 as amended vide notification No. 24/2017-Central tax (rate) dated 21.09.2017 and further amended vide notification no. 31/2017 – Central Tax (Rate) dt 13.10.2017,Central tax at the rate of 6% is applicable on the following, In the said notification, in the Table, as per serial number 3, for item (vi) in column (3) and the entries relating thereto, "(vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authorityby way of construction, erection. commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of- (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any ot
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Chairman, who shall be the State Minister of Urban Development of the State of Rajasthan, or a nominee of the Governor during President's Rule; (iii) Secretary to the Government, Urban Development and Housing Department; (iv) Jaipur Development Commissioner (appointed under this Act); (v) Chairman, Rajasthan Housing Board; (vi) Chief Engineer, Public Health Engineering Department; (vii) Chief Engineer, Public Works Department; (viii) District Collector, Jaipur; (ix) Chief Engineer, Rajasthan State Electricity Board; (x) Chairman/Administrator, Municipal Council, Jaipur; (xi) ZilaPramukh of Zila Parishad, Jaipur District; (xii) Chief Town Planner, Rajasthan; and (xiii) Non-official members, not exceeding seven, to be nominated by the State Government]; As per Section 90 of the said Act. Control by State Government.- (1) The Authority shall exercise its powers and perform its duties under this Act in accordance with the policy framed and the guidelines laid down, from time to time by
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no.24/2017-Central Tax (Rate) dated 21.09.2017 and further amended with notification no. 31/2017-Central Tax (Rate) dated 13.10.2017 with 12% GST applicable on contractor as well as on subcontractor. 8.6 Therefore, as per the findings in above paras the Jaipur Development Authority is found to be covered under the Government Authority and Services provided by M/s TPL -SUCG Consortium found to be covered under services mentioned at SI. no.3 (vi) (a) of the notification no. 11/2017 – Central Tax (Rate) dt.28th June 2017 amended with notification no.24/2017-Central Tax (Rate) dated 21.09.2017 and further amended vide notification no. 31/2017- Central Tax (Rate) dated 13.10.2017. 8.7 Regarding the liability of GST on sub-contractor, as per Decisions taken in the 25lhmeeting of GST Council held at New Delhi on 18.01.2018 Works Contract Services (WCS) provided by the sub-contractor to the main contractor; providing WCS to Central Government, State Government, Union territory, a local authori
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