Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 2-11-2018 – Works Contract Section 2(119) defines the expression works contract as for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. Works contract – supply of service? Schedule II of the Act provides the list of activities or transactions to be treated as supply of goods or supply of services. Entry 6(a) of Schedule II prescribes that the works contract is a composite supply that shall be treated as supply of services. Section 2(30) defines the expression composite supply as a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally b
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Central University of Kerala represented by RITES Ltd. Construction of Biotech lab and administrative block at Life Science Park, Trivandrum. – HLL Infra Tech Services Ltd. The Authority examined the issues in detail. The Authority held that- As per the amendment to notification No. 8/2017 vide notification No.39/2017 dated 13.10.2017, composite supply of works contract as defined in clause (119) of section 2 of the GST Act, supplied to the Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Governmental Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration is taxable @12% GST; The work awarded by Government is subsequently given as sub-contract, by the principal contractor. The composite supply of works contract provided by a sub-contractor is also taxable @12% GST. The Life Sciences Park, Trivandrum is a commercial venture of the KSIDC Ltd., a St
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ntrol over the applicant M/S M.P. Paschim Kshetra Vidyut Vitran Co. Ltd. and the applicant is covered under the definition of Government Entity. The projects under DDUGY, IPDS, ADB, SSTD, Saubhagya Yojna, FSP and all other schemes of governments are carried out for business purpose and the benefit of Concessional Rate of 12% (6% under Central tax and 6% State tax) as per notification under is not available to the applicant on works pertaining to construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration, which are carried out in respect of projects under DDUGY, IPDS, ADB, SSTD, Saubhagya Yojna, FSP and all other schemes of governments as the same is undertaken for the business purpose. In the instant case, the applicant had awarded work to the successful bidder tor Supply of Materials and Erection respectively. Therefore, the contract entered by the applicant is squarely falls under the works contract and falls under ent
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al work to be done at the site to be called a car parking system . Once made operational the car parking system obtains a state of permanency. It is not such as can be easily removed from the existing place and put into place at some other location. The definition of works contract under the GST Act is in relation to immovable property. Turnkey EPC project In re. RFE Solar Private Limited. – 2018 (9) TMI 693 – AAR, Rajasathan, the question for advance rulings in this case is – Whether contract for Erection, Procurement and Commissioning of Solar Power Plant shall be classifiable as Supply of Goods or Supply of Services under the provisions of the Central Goods and Services Tax Act 2017 and Rajasthan State Goods and Services Tax Act 2017? The Authority held that Turnkey EPC Contract are not getting covered under supply of 'Solar Power Generating System' under Entry 234 of Schedule I of the Notification no. 1/2017-Integrated Tax (Rate), Entry 234 of Schedule I of the Notification
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ial damage and thus cannot be reassembled, therefore the pipeline network so created would be considered as immovable. As the applicant is engaged in the activity of construction of pipeline network which becomes immovable property wherein transfer of property in goods is involved, the said activity falls within the definition of works contract under the CGST Act, 2017 and the GGST Act, 2017. Indivisible contract In re. SKILLTECH ENGINEERS AND CONTRACTORS PVT. LTD. – 2018 (6) TMI 111 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA, The applicant sought advance ruling on the following questions/issues that- Whether the contract, executed by them for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [works contract]? Whether the tax rate of 12% [CGST-6% + SGST-6%] is applicable to the above contract, in pursuance of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017? The Authority held that the applicant, being the successful bidder,
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