Home Case Index All Cases GST GST + AAR GST - 2020 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 629 - AAR - GSTConstruction of the pipeline in Bangladesh - Works contract service or not - export of service or not - place of supply of service - input tax credit on its inward supplies for the service rendered in the construction of Bangladesh portion of the pipeline - levy of tax on goods or services procured locally within Bangladesh for the purpose of construction of Bangladesh portion of the pipeline on behalf of NRL - input tax credit on procurement of such goods or services in Bangladesh used in the construction of Bangladesh portion of the pipeline on behalf of NRL. HELD THAT:- A strip of land extending over more than a hundred kilometre is not a fixed establishment in terms of section 2(7) of the IGST Act. Location of the recipient in the present context cannot, therefore, be determined by applying the provisions under section 2(14) (b) or (c) of the IGST Act. NRL being registered and resident of India, the location of the recipient of the service shall be in India in terms of section 2(14)(d) of the IGST Act - The place of supply of the service should, therefore, be determined in terms of proviso to section 12(3)(a) of the IGST Act for carrying out the construction work of immovable property. It shall be in India, being the location of the recipient - The applicant’s service will not, therefore, be the export of service within the meaning of section 2(6) of the IGST Act. The provisions for deemed export under section 147 of the GST Act is available for supply of goods only. The applicant’s supply of service cannot, therefore, be considered “deemed export’ under the GST Act - Although a public sector undertaking NRL is not a Govt Entity as defined in clause 4(x) of the Rate Notification (direct Govt participation in equity is less than 90% in NRL). The concessional rate in terms of Entry No. 3(iii)(c) of the Rate Notification is, therefore, unavailable. It will, therefore, be taxable @ 18% under Entry No. 3(xii) of the Rate Notification. GST shall be payable on the consideration receivable for the applicant’s service.
|