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2019 (2) TMI 1999 - AAAR - GSTLevy of GST - Reverse charge mechanism - payment to PWD, Uttarakhand for construction of road - N/N. 13/2017 dated 28.06.2017 - time of supply when advance payment is released to PWD, Uttarakhand - amount deposited with Central Fund i.e Uttaranchal CAMPA and reimbursed by MEA considering as part cost of the road - HELD THAT:- NHPC as the implementing agency delegated the responsibility of completing the project to PWD (construction agency) and a Memorandum of Understanding was made between these two agencies. To implement the project, works contract was allotted by PWD through an open tender to their contractor M/s RG Buildwell Engineering Pvt. Ltd. In view of these facts, it is clear that no GST is payable by NHPC on reverse charge or otherwise on the payments for this project that is/will be made by them to PWD as the issue is squarely covered by the entry serial- 9c of the notification no. 32/2017-CT(R) dated 13.10.2017, as rightly concluded by the Ld. AAR. This issue is not contested by the appellant also. Thus from MEA to NHPC up to the stage of PWD it is an exempt supply between one government entity to other govt entity. In the present case, M/s NHPC had raised a specific query as to whether they need to pay GST on reverse charge to PWD and to that extent, the ruling was that they are not required to do so. Whether the taxability on provision of works contract will be applicable on the works contract allotted by PWD is not an issue raised in the advance ruling application, Hence, we refrain from going into specifics of the same, thus, without going into the merits, since there was no taxability till the stage of PWD on account of entry 9c of notification 12/2017 as amended time to time, so discussions and findings of the Learned AAR on this issue become irrelevant and hence infructuous and need to be set aside.
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