Home Case Index All Cases GST GST + AAR GST - 2022 (3) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 1085 - AAR - GSTClassification of supply - composite supply of works contract - Government entity or not - project of Tolling, Operation, Maintenance & Transfer - Toll Management System (TMS) - classified under Entry (vi) of Serial No. 3 of the Notification No. 11/2017-C.T. (R), dated 28th June, 2017 or under Entry (iv) to Serial No. 3 of the CGST Rate Notification read with the GGST Rate Notification - applicable rate of GST - HELD THAT:- TMS works is supplied by Tecsidel to M/s Adani and not to any Central/ State Government, Union Territory, local authority, Government Authority or Government Entity. Further, the activity of collection of Toll excludes the TMS works from the category of ‘predominantly meant for use other than for commerce, industry, or any other business or profession’. The word Business has a wide inclusive definition vide Section 2(17) CGST Act including, inter alia, any trade, commerce, or any other similar activity, whether or not it is for a pecuniary benefit, including activities in connection with/ incidental/ ancillary to it, whether or not there is regularity of such transactions. We find that the conditions of this sr. no 3(vi) of said NT is not satisfied in subject matter. The subject Service order is for supply of Toll Management System (TMS)to be erected and commissioned, on an expressway. Supply does not include construction of expressway/ road/ terminal but is for limited purpose of supply of TMS simpliciter. The purpose will be for collection of the tolls/ toll fee and not for control/ management of the traffic on road - the conditions of this sr no 3(iv) of said NT is not satisfied in subject matter. Service provided by sub contractor to main contractor liable to@ 12% in respect of entry No. (iv) and (vi) of Not. No. 11/2017-CT (Rate) - HELD THAT:- In the present matter, only the supply of TMS is under consideration but in the cited Ruling supply of ‘Intelligent transport system installation project which includes Advanced Traffic Management system (AMTS), TMS and Digital Transmission system along with operation and maintenance of AMTS for 4 years to provide real time information about traffic conditions, pollution, weather conditions and status of expressway to road users making road travels convenient, faster and safer’ was considered. The present case does not involve supply of Road along with TMS, but simply supply of TMS itself on an already constructed national highway stretch. Thus, subject supply is not covered at sr no 3(iv/vi) of said NT. Further, as per discussion at para 11.3, sr no 3(ix) of said notification is not attracted in subject case. GST is leviable at 18% vide Sr. No. 3 (xii) of Not. No. 11/2017-CT (Rate) dated 28-6-17 as amended.
|