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2023 (11) TMI 592 - AUTHORITY FOR ADVANCE RULING, TELANGANAScope of exemption from GST - Claim of exemption for services provided by sub-contractor to main contractor - The services provided by the Main Contractor claimed as exempted from GST - covered by Notification No. 12/2017-Central Tax (Rate), dated 28th November, 2017 as amended by Notification No 2/2018 - Central Tax (Rate) dated 25/01/2018 or not HELD THAT:- Though the Notification 12/2017 as amended by Notification 2/2018-Central Tax (Rate), Dt. 25-01-2018 exempt works contract with value of supply of goods less than 25% when the said supply is made to the Central Government, State Government or Local Authority etc., it does not make any mention of the supplies made by the sub-contractor to the works contractor as was done in Notification 11/2017. As the exemption notification have to be strictly construed, the exemption extended to a works contractor is not applicable for his procurement of works contract - Therefore in sum and substance the exemption extended to a works contractor supplying the works contract services to Government or local bodies is not extendable to a taxable person who is supplying services to such works contractor in absence of any entry or notification under Sec11 (1) of the CGST Act.
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