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2022 (2) TMI 1047 - AAR - GSTClassification of supply - supply of goods or supply of services - composite supply or not - works contract - applicability of Entry 3(x) of Notification No. 11/2017-CT (R) dated 28.06.2017 i.e. provided by a sub-contractor to the main contractor providing services specified in item (vii) above to the Central/State Government, Union territory, a local authority, a Governmental Authority or a Government Entity taxable at the rate of 5% - HELD THAT:- The applicant is to provide only drilling and blasting operation with the usage of explosives for extraction of boulders at the said QUARRY to M/s Balajee. The applicant's submissions as well as the submissions of the jurisdictional officer that, the work of blasting with explosives which is subcontracted to the applicant, is a composite supply as defined under the GST Laws, is agreed upon - also since the Applicant is rendering a composite supply and since the said supply is in respect of immovable property i.e. Airport Land, it is found that the applicant is providing Composite supply of works contract as to M/s Balajee. Whether the work of drilling and blasting with explosives, which has been sub contracted to the applicant, falls under Sr. No. 3 (x) of Notification No 11/2017-CT (Rate) dated 28.06.2017? - HELD THAT:- Sr. No. 3 (x) of Notification No 11/2017-CT (Rate) elated 28.06.2017 states that Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item (vii) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity - the impugned service supplied by the applicant will be covered under Sr. No. 3 (x) of Notification No. 11/2017 - CTR dated 28.06.2017 only if the services provided by M/s Balajee to M/s CIDCO, a Government entity, falls under Sr. No. 3 (vii) of Notification No.11/2017-CT (Rate) dated 28/6/2017. Notification No.11/2017-CT (Rate) dated 28/6/2017 was amended vide Notification No. 15/2021 - CT(R) dated 18.11.2021 (with effect from 01.01.2022) and in Sr. No 3 (vii) of the amended Notification No. 15/2021-CTR dated 18.11.2021, the words “Governmental Authority” and “Government Entity” have been deleted. Therefore, with effect from 01.01.2022, the impugned services supplied by the applicant will not be covered under Sr. No. 3 (x) of Notification No. 11/2017-CT (Rate) dated 28/6/2017, as amended.
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