In Re: M/s. P.K. Agarwala, (Partnership (Firm)
GST
2019 (1) TMI 1369 – AUTHORITY FOR ADVANCE RULING, JHARKHAND – 2019 (20) G. S. T. L. 605 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, JHARKHAND – AAR
Dated:- 3-11-2018
JHR/AAR/2018-19/01
GST
Sri Pradhuman Badri Prasad Meena and Sri Ram Chandra Prasad Barnwal Member
Present for the applicant: Mr. Pradeep Kumar Agarwal (Authorized Signatory)
Note: Section 100 of the IGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of IGST Act 2017, within a period of 30 days from the date of service of this order.
The applicant M/s. P.K. AGARWALA (herein after referred to P.K. Agarwala) having GSTN No- 220AABFM9005A1Z6 is a partnership firm. The firm M/s. P.K. AGARWALA is a contractor carrying of contract work of M/s. Uranium Corporation of India Ltd., Jadugoda and made the following submission:-
1. the applicant has been rewarded works contract f
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or a board or any other body including a society, trust, corporation which is –
i) Set up by an act of parliament or State legislative, or
(ii) Established by any government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central government, State Government or Local Authority.
4. In the present instance 100% of the equity share is held by the President of India M/s. Uranium Corporation of India Ltd., Jadugoda.
5. The applicant sought Advance Ruling on the following questions/issues:
(i) Whether M/s. Uranium Corporation of India Ltd. -Comes under the Purview of Government Entity.
(ii) What will be the rate of GST on the above attached work order.
6. As per Section 97(2) of the Central Goods and Services Tax Act, 2017(herein after referred to as the 'CGST ACT, 2017) and Jharkhand Goods and Services Tax Act, 2017 empowers the Advance Ruling authority to decide the following issues:-
(a) classification of any goods or serv
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ork order no. T-964 dt. 20.06.2017) and a copy of notification no. 39/2017 integrated tax dt.13.10.2017 with regard to above raised questions:-
a. A “Government Entity” shall be defined as an authority or a board or any other body including a society, trust, corporation which is – Set up by an act of parliament or State legislative, or Established by any government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central government, State Government or Local Authority.
b. In the present instance 100% of the equity share is held by the President of India M/s. Uranium Corporation of India Ltd., Jadugoda.
c. Serial No 3 of notification 39/2017 dated 13.10.2017 was issued under the GST Act, Composite supply of works contract as defined in clause 119
d. Details and description of attached work order:
Description
Quantities/units
Rate in figure in Rupees
Amount in Rupees
Clearing of site of all permanent construction, roads, pipel
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upply and transport of earth of specified quality (as per specification and drawing) from any source including all taxes, any filing the same in embankment in random fill zone in layers not exceeding 250mm measured loose in proper profile to various heights above existing ground level after stripping of top soil as per specification, watering of each layer in the stipulated manner as per specification and / or direction of Engineer and compaction by mechanical means (Dozer Static & Vibratory roller) to achieve required degree of compaction as per specification, disposal of excess of unusable material all completer as per drawing specification and direction of Engineer including cost of all machinery tools & tackles for any lead (Sectional measurement for compacted filing will only be paid)
478500 CuM
300
14,35,50,000/-
Supply and transport impervious clay of specified quality (as per specification and drawing) from any source including all taxes, any filing the same in embankment i
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ed coarse and filters as per drawing
5100
751
38,30,100/-
9. Personal Hearing Proceedings:
The Personal hearing of the applicant's Representatives was conducted and concluded on 30/08/18 & 06/09/18 Wherein the the points submitted in the written submission were reiterated.
10. Discussions & Findings :
10.1 We have considered the submissions made by the Applicant in their application for Advance Ruling as well as the submissions made during the Personal Hearing. We also considered the questions/issues on which Advance Rulings have been sought for by the applicant, relevant facts having bearing on the question/issue raised, the applicant's understanding/interpretation of law in respect of the issue.
11. In view of the above, we proceed to deliver Advance Ruling on the two questions, i.e.
(i) Whether M/s. Uranium Corporation of India Ltd. – Comes under the Purview of Government Entity; and
(ii) What will be the rate of GST on the above said work order.
11.1 By going through
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on, 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.” In the instant case the applicant applicant has been awarded works contract for raising a Dam as per the requirement/specifications provided by the recipient.
11.4 In the instant case the applicant is carrying works contract service for M/s. Uranium Corporation of India, which is a Government Body. The rate of GST for Works Contract service has been prescribed in serial number 3 of Notification No. 11/2017-Central Tax (Rate) dated 2806.2017 as amended by Notification No. 20/2017-CentraI Tax (Rate) dated 22.08.2017 & notification no.24/2017-Central Tax (Rate) dated 21.09.2017 as:
“…………… Composite supply of works contract as defined in clause (119) of section 2 of the Jharkhand Goods and Services Tax Act, 2017, supplied to
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ankment or construction made of earth specially one used as a field fortification. The Collins dictionary defines Earth Work as “excavation of earth as in engineering construction; a fortification made of earth. The Wikipedia defines Earth Work as “Earth work are engineering works through the processing of parts of earth surface involving quantities of soil or unformed rocks. After going through different definitions of earth work, we find that Bulk earthworks include the removal, moving or adding of large quantities of soil or rock from a particular area to another. They are done in order to make an area of suitable height and level for a specific purpose.
12.2 It is evident that the work order is for supply of services with material. It is also seen from the work order that the first four part of the work order is related with clearing of earth, excavation, supplying & laying of earth and impervious clay. The major part of the contract involves earth work i.e., more than 75% of the
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