2018 (8) TMI 282 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – TMI – Works contract – Composite supply – natural bundling of supply of goods and services – What is HSN in which the service of construction of new 33/220 kV Pooling i Substation at Badwar, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing shall fall? – What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Barsita Desh, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – II) under World Bank Financing shall fall? – What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Ramnagar Pahad, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey bas
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
pply of service.
–
Ruling:- The HSN Code for the supply of composite service in the nature of Works Contract under the all the three agreements entered into with RUMS, shall be 9954/995423 – The rate of CGST on the supply being made under the contract shall be according to Notification No. 11/2017 – Central Tax (Rates) – The rate of MPGST on the supply being made under the contract shall be also 9 percent as per the corresponding Notification to the Notification No. 11/2017- Central Tax (Rates), issued under MPGST Act,2017. – Case Number 02 OF 2018 And Order No. 03 of 2018 Dated:- 22-6-2018 – Shri Rajeev Agrawal, Joint Commissioner, And Commissioner CGST And Central Excies And Shri Manoj Kumar Choubey, Joint Commissioner of State Tax, Commircial Tax Division For The Applicant : Sandeep Mukherjee, CA RULING 1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, y 2017 and MP Goods & Services Tax Act, 2017 (hereinafter also referred to CGST
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cuation infrastructure. 3.3 At present the applicant has entered into a contract with RUMS for: * construction of new 33/220 kV Pooling Substation at Badwar, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (LoM) under World Bank Financing; * construction of new 33/220 kV Pooling Substation at Barsita Desh, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – II) under World Bank Financing; and * construction of new 33/220 kV Pooling Substation at Ramnagar Pahad, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – III) under World Bank Financing. 3.4 Under the agreements with the RUMS, the scope of work involves supply of all Transmission Line
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
is as follows :- (i) What is HSN in which the service of construction of new 33/220 kV Pooling i Substation at Badwar, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing shall fall? (ii) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Barsita Desh, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – II) under World Bank Financing shall fall? (iii) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Ramnagar Pahad, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – III) under World Bank Financing shall fall? (iv) What shall be the app
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t regarding classification of the work is that the work being done by the applicant under contract with RUMS is construction of new 33/220 kV Pooling Substation along with associated 220 kV DCDS Transmission Line and associated feeder bay work, is in the nature of a Composite Supply, since it involves supply of goods as well as services. Also, as per the provisions of the CGST Act, this work is in the nature of a Works Contract and is classifiable as supply of service. In support of this contention, the applicant refers to SI.No. 6 of Schedule II to the CGST Act, 2017. 6.3 Regarding the applicable rate of GST, the applicant submits that the rate of GST on Works Contract on the nature of work being done for RUMS shall be taken from Notification for Services, i.e. Notification No. 11/2017 – Central Tax (Rates), para 3, clause (ii) for CGST and that the rate of GST comes to 18%. 6.4 We have perused the contents of the agreement between the applicant and RUMS, more specifically the scope o
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he scope of work in all the three agreements are identical, accordingly, all the three agreements shall have the same classification for the purpose of taxation under the GST Laws. Further, we concur with the submission of the applicant regarding applicability of SI.No. 6 of Schedule II of the CGST Act, 2017 and MPGST Act, 2017, to the work being done by the applicant. The work being done by the applicant being a Composite Supply and Works Contract u/s 2 is clearly a supply of service. 6.7 Regarding the averment of RUMS that since the work is part of evacuation infrastructure being exclusively for Solar Power, for a Solar Park and is being developed by Solar Project Park Developer, it is observed that the rate of 5% on activity relating to Solar Power is the rate of GST for supply of Goods. The GST rate of 5% advalorem under Chapter Heading 84 and 85, as given in SI.No. 234 of Schedule I of Notification No. 1/2017 – Central Tax (Rates) is for supply of goods. The relevant para of the N
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n the corresponding entry in column (2) of the said Schedules ……………… The entry at SI. No. 234 is as under: S. No. Chapter/ Heading/ Sub-heading/ Tariff item Description of Goods 234. 84 or 85 Following renewable energy devices Et parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants/devices (f) Solar lantern/solar lamp (g) Ocean waves/tidal waves energy devices/plants 6.8 It is seen that Notification No. 11/2017 – Central Tax (Rates) and corresponding notification under MPGST has prescribed 2.5% as CGST, meaning 5% GST on the following works – a. Under para3, clause (vii) for Composite supply of works contract as defined in clause of section 2 of the Central Goods & Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75% of the value of the works contract) provided to the CG,SG,UT, local aut
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Works Contract for creating infrastructure which is to be exclusively used for Solar Power or in a Solar Park for or by a Solar Project Park Developer. 7. Order u/s 98 of the CGST Act, 2017 and MPGST Act, 2017: In view of deliberations above, we pass the Advance Ruling: 7.1 The HSN Code for the supply of composite service in the nature of Works Contract under the all the three agreements entered into with RUMS, referred to in para 3.3 supra shall be 9954/995423, as detailed hereunder: Annexure : Scheme of Classification of Services S. No. Section, Chapter, Heading or Group Service Code (Tariff) Service Description ……………… 15. Group 99542 995423 General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works 7.2. The rate of CGST on the supply being made under the contract referred to in para 3.3 supra shall be according to Noti
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =