In Re: Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limited
GST
2018 (9) TMI 1645 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2018 (17) G. S. T. L. 700 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 27-8-2018
AAR No. 11\/2018
GST
SHRI RAJIV AGRAWAL AND SHRI MANOJ KUMAR CHOUBEY, MEMBER
\nPresent on behalf of applicant: Shree Abhay singi, C.A. and Shree Anirudh Tiwari, Accounts Officer
\nPROCEEDINGS
\n(Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017)
\n1. The present application has been filed u\/s 97 of the Central Goods & Services Tax Act, 2017 and MP Goods & Services Tax Act, 2017 (hereinafter also referred to CGST Act and MPSGT Act respectively) by M\/S Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (hereinafter also referred to as applicant), registered under the Goods & Services Tax.
\n2. The provisions of the CGST Act and MPGST Act are identi<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n whether clause(vi)(a) of Sr. No. 3 of table of Notification No. 11\/2017-Central Tax (Rate) dated the 28th June, 2017 is applicable on the works contract undertaken by it. And determination of liability to pay Tax. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d – 13\/10\/2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n provisions referred above issued under the Notification No. 24\/2017-Central Tax (Rate), Dated – 21\/09\/2017 and Notification No. – 31\/2017 – Central Tax (Rate), Dated – 13\/10\/2017 is applicable on the Company. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s important to discuss the nature of work undertaken by the applicant. The Applicant is entrusted for various ambitious projects of Central and State Government relating to strengthening of power distribution network and Rural Electrification for public welfare such as Deendayal Upadhyay Gram Jyoti Yojna for Rural Electrification (DDUGJY), Integrated Power Development Scheme (IPDS), Saubhagya Yojna, ADB funded project, Scheme for Strengthening of Transmission and Distribution systems (SSTD) projects, feeder separation project (FSP) etc., the work has been carried out with the help of Contractor and work include both supply of material and erection of the same. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ining 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. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: Madhya Pradesh Paschim Kshetra Vidyut Vitran Company LimitedGST2018 (9) TMI 1645 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2018 (17) G. S. T. L. 700 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AARDated:- 27-8-2018AAR No. 11\/2018 GSTSHRI RAJIV AGRAWAL AND SHRI MANOJ KUMAR CHOUBEY, MEMBER Present on behalf … Continue reading “In Re: Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limited”<\/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-14075","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14075","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=14075"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14075\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n5. DEPARTMENT'S VIEW POINT- The concerned officer submitted that the nature of works contract undertaken by the applicant doesn't come under the category for which the notified rate of tax is 12%(6%CGST and 6% SGST) but it will attract 18%(9% CGST and 9% SGST).
\n6. RECORD OF PERSONAL HEARING –
\nShree Abhay singi, C.A. and Shree Anirudh Tiwari, Accounts Officer Appeared for personal hearing on 06.07.18 and they reiterated the submission already made in the application and attached additional submission which goes as follow –
\n6.1. The Company Madhya Pradesh Paschim Kshetra Company Ltd. (MPPKVVCL) is wholly owned subsidiary of M.P. Power Management Co. Ltd.
\n6.2 The holding Company M.P. Power Management Co. Ltd. is wholly owned by the Government of Madhya Pradesh.
\n6.<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n4) Notification No. – 46\/2017 – Central Tax (Rate), Dated – 14\/11\/2017.
\n5) Notification No. – 01\/2018 Central Tax (Rate), Dated – 25\/01\/2018.
\n6.7 Vide notification no. 24\/2017 – Central Tax (Rate), Dated – 21\/09\/2017,
\nGovernment of India by inserting entry no. (vi) notified concessional GST rate of 6% for the construction services provided to Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of-
\na) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
\nb) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or
\nc) a residential complex predominantly meant for self-use or the use of their employees or other persons specif<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n7. DISCUSSIONS AND FINDINGS:
\n7.1. First of all we must look in the contention that the Applicant is a government entity or not. As per Notification No. 31\/2017 – Central Tax (Rate), Dated 13\/10\/2017 issued under CGST Act, 2017 and corresponding notification under MPGST Act, 2017. Government Entity is defined as under –
\n“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; or 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.”
\n7.2. The Company Madhya Pradesh Paschim Kshetra Company Ltd. (MP<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n7.7. The projects are undertaken for construction of electricity distribution lines, sub-stations and other infrastructure which arc meant predominately for sell of electricity in urban and\/or rural area.
\n7.8. As per the Memorandum of Association of the Company, Main objects to be pursued by the Company on its incorporation is <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nFurther, as per Section 2 of CGST Act '2017 and MPGST Act, 2017 defines “works contract” as a contract 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;
\nThe composite supply of works contract as defined at Section 2 of CGST Act '2017 and MPGST Act, 2017 is treated as supply of service in terms of serial no.6, Schedule II of CGST Act '2017 and MPGST Act, 2017.
\nIn the instant case, th<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n