In Re : Swati Dubey
GST
2018 (8) TMI 282 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – TMI
AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – AAR
Dated:- 22-6-2018
Case Number 02 OF 2018 And Order No. 03 of 2018
GST
Shri Rajeev Agrawal, Joint Commissioner, And Commissioner CGST And Central Excies And Shri Manoj Kumar Choubey, Joint Commissioner of State Tax, Commircial Tax Division
\nFor The Applicant : Sandeep Mukherjee, CA
\nRULING
\n1. 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 Act and MPSGT Act respectively) by Vihan Enterprises (hereinafter also referred to as applicant), registered under the Goods St Services Tax.
\n2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ruction 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 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ich 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? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n o 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n lar power based devices = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 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: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re : Swati DubeyGST2018 (8) TMI 282 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – TMIAUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – AARDated:- 22-6-2018Case Number 02 OF 2018 And Order No. 03 of 2018 GSTShri Rajeev Agrawal, Joint Commissioner, And Commissioner CGST And Central Excies And Shri Manoj Kumar Choubey, Joint Commissioner of State … Continue reading “In Re : Swati Dubey”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-13049","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13049"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13049\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n * 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.
\n3.4 Under the agreements with the RUMS, the scope of work involves supply of all Transmission Line material and sub-station Equipments (excluding Power Transformers, it's associated accessories and oil), Station Transformers, Fabricated, Galvanized sub station Structures and other materials, with related civil works, erection work and testing\/commissioning for construction of new 33\/220 kV pooling sub-stations, transmission lines and feeder bay work on <\/p>\n
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\n (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?
\n (iv) What shall be the applicable rate of CGST and SGST on the supply being made under the contract?
\n5. Record of personal hearing – The matter was taken up for hearing on 08.06.2018 where CA Sandeep Mukherjee attended the hearing for the Applicant. He submitted copies of the letters written by RUMS to the Applicant and MP Power Transmission Co. Limited and requested tha<\/p>\n
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\n6.3 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%.
\n6.4 We have perused the contents of the agreement between the applicant and RUMS, more specifically the scope of work in the agreement at para 4 of the agreement. On a reading of the scope of work, it is clear that the work involves both supply of goods and supply of services, which are naturally bundled. Accordingly, the under this agreement, the applicant is providing a composite supply within the meaning of Section 2 of the CGST Act, 2017.
\n6.5 T<\/p>\n
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\n6.7 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 Notification is as under:
\n “G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the rate of the central tax of-
\n (i) 2.5 per cent, in respect of goods specified<\/p>\n
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\n(c) Solar power generating system
\n(d) Wind mills, Wind Operated Electricity Generator (WOEG)
\n(e) Waste to energy plants\/devices
\n(f) Solar lantern\/solar lamp
\n(g) Ocean waves\/tidal waves energy devices\/plants”
\n6.8 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 –
\n 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 authority, a Governmental authority or a Government entity
\n b. Under para3, clause (x) for Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item (vii) above to<\/p>\n
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\nAnnexure : Scheme of Classification of Services
\nS.
\nNo.
\nSection, Chapter, Heading or Group
\nService Code (Tariff)
\nService Description
\n………………
\n
\n
\n
\n15.
\nGroup 99542
\n995423
\nGeneral 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
\n7.2. The rate of CGST on the supply being made under the contract referred to in para 3.3 supra shall be according to Notification No. 11\/2017 – Central Tax (Rates), extract where of is reproduced hereunder:
\nSl.
\nNo.
\nChapter, Section or Heading
\nDescription of Service
\nRate (per cent.)
\nCondition
\n3.
\nHeading 9954 (Construction services)
\n(ii) compos<\/p>\n
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