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2019 (11) TMI 1709 - AUTHORITY FOR ADVANCE RULING, GOAClassification of service - works contract service or not - composite supply or not - change in the rate of GST - supply of labour force/work without material by a sub-contractor to main contractor, who is engaged in supply of “works contract” service - whether reduced GST rate from 18% to 12% is applicable also to such sub-contractors supplying labour force/work without material to the main contractor who is engaged in supply of “works contract” service? - HELD THAT:- The applicant is a person registered under the provisions of GST Act, 2017 and is engaged in supply of labour force/work to M/s MVR, who are engaged in supply of “works contract” service - the natures of works undertaken by the applicant are predominantly dumping of soil from one place to another place and in relation to excavation. The applicant is performing his task with help of his men and machines, and he is not supplying any material to the main contractor. The “works contract” is a composite supply and it is composition of activities of building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repairs, maintenance, renovation, alteration or commissioning carried out on an 'immovable property' and transfer of property (whether in form of goods or in some other form) must essentially take place with such activities. The supply of “works contract” is to be treated as supply of service but it is combination of supply of service and supply of goods. Transfer of property in goods (whether as goods or in some other form) is an essential component of supply to be treated as “works contract” service. Thus, there is no transfer of property from the applicant to the main contractor (M/ s MVR) while performing the work of dumping of soil from one place to other place or while activity of excavation. The applicant is merely performing labour work. Therefore, the activities carried out by the applicant cannot be treated as “works contract”.
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