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2018 (5) TMI 1848 - AAAR - GSTTransitional credit - transition to GST regime - pipes used in pipeline network - inputs contained in semi-finished or finished goods - sub-section (6) of Section 140 of the Central Goods and Services Tax Act, 2017 - Held that:- The entire quantity of pipe was supplied by the appellant to RMC before the appointed date. The work of supply of pipes at location specified by RMC and work of excavation of trenches and laying of pipes had already been completed before the appointed date and only the work of testing and commissioning of network of pipeline was pending on the appointed date and will now be completed in the Goods and Services Tax regime. In view of this factual position, the appellant cannot be said to be holding pipes in stock as inputs or inputs contained in semi-finished or finished goods, on the appointed day. Also, even if the contract of the appellant was on work-in-process stage on the appointed day, the same would not be covered within the terms ‘semi-finished or finished goods’ as the term ‘goods’ covers movable property and not immovable property. Thus, the appellant is not entitled to avail input tax credit of Central Excise Duty and VAT paid on pipes, under sub-section (3) and (6) of Section 140 of the CGST Act, 2017 and the GGST Act, 2017. Works contract - Activity of construction of pipeline network which becomes immovable property - levy of GST - Held that:- As per clause 6(a) of the Schedule II read with Section 7 of the CGST Act, 2017 and the GGST Act, 2017, the composite supply, namely works contract as defined in clause (119) of section 2 shall be treated as a supply of services. The provisions related to determination of time of supply of services are contained in Section 13 of the CGST Act, 2017 and the GGST Act, 2017 - the part of the supply made by the appellant wherein time of supply of service is on and after the appointed date (01.07.2017) i.e. after implementation of the CGST Act, 2017 and the GGST Act, 2017, the appellant is required to discharge Goods and Services Tax liability.
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