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2022 (4) TMI 1341 - AUTHORITY FOR ADVANCE RULING, GUJARATClassification of composite supply - works contract service by way of construction of Construction of New Adarsh Nivashi Shala (Kumar) / School Hostel (324 Bed ) / Staff Quarters and Kumar Chhatralay for the Road and Building Department in the Government of Gujarat - merits classification at Serial Number 3(vi)(a) and (b) of N/N. 11/2017 – Central Tax(Rate) dated : 28.06.2017, as amended from time to time and last amended by N/N. 21/2012-Central Tax(Rate) dated : 31.12.2021 w.e.f. 01.01.2022 or not - HELD THAT:- The subject contract is for the construction of immovable property wherein transfer of property in goods is involved in the execution of subject contract. The subject supply is Works Contract Service. The Supply comprises supply of school building, school hostel, college hostel, Principal’s bungalow and staff quarters. The subject supply is a composite supply of works contract service. Thus, the service recipient is Government of Gujarat (GoG). Explanation to Serial No 3(vi) of said NT, 'business' shall not include any activity or transaction undertaken by the State Government in which they are engaged as public authorities. Thereby, this activity undertaken by GoG out of the purview of business, as described at sr no 3(vi)(a) of Said NT. Also, School building is a structure meant for use as an educational establishment as described at entry at Sr no 3(vi)(b)(i) of said NT; and supply of Staff Quarters is covered at 3(vi)(c) of said NT. It is noted that Revenue submits that said civil structure may be used for commerce or business. It is held that a School building will be used by State Government for education and cannot be considered a commercial building. Further, with the explanation of term business incorporated into Sr no 3(vi) of said NT as discussed and nothing of contrary vide a specific intelligence report submitted by Revenue that the structure supplied is for business/ commerce purpose, there are no merit in Revenue’s submission. The subject Supply merits entry at Sr. No. 3(vi) of said NT.
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