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2019 (3) TMI 1703 - AAR - GSTConsultancy services - applicability of Sl. No. 3 of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 - services provided by them by way of providing engineering and consultancy services i.e. Project Management, Project Planning and Construction Supervision Services under the Contract - HELD THAT:- The services supplied by the Consultant, Sheladia Associates, Inc. USA to the Client, Public Works Department, Government of Mizoram in terms of Appendix-A, Section 7 Terms of Reference, Para 1 are "Construction Supervision and Contract Administration Consultancy Services for Works Contract" for the upgradation of 81 KM length of State Highways and Major District Roads in the State of Mizoram. The Financial Assistance has been provided by International Development Association (IDA). Section-F relating to payments to the Consultant provides that all local identifiable 'indirect taxes' will be reimbursed to the Consultant or are paid by the Client on behalf of the Consultant. Hence, the Consultant i.e. the applicant in this case are within their right to charge and collect GST from the Service Recipient in this case. The services provided by the applicant in this case are not in relation to any function entrusted to any Panchayat or Municipality under Article 243G and Article 243W of the Constitution respectively. Hence, benefit of exemption from tax in terms of Sl. No. 3 of Notification No. 12/2017-Central Tax (Rate), dated 286-2017 and the corresponding notification under MGST Act, 2017 is not available to the applicant - Thus, the applicant is within its rights under the CGST and SGST Acts for charging GST to the Service Recipient on the service value for the services provided under the Contract.
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