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2019 (11) TMI 159 - AAR - GSTRate of tax - main contractor or sub-contractor - applicability of entry SI No 3 (vi) (a) of notification 11/2017-CGST (Rate) as amended till date or Entry SI No. 3 (ix) of 11/2017 -Central Tax (Rate) as amended - HELD THAT:- It is pertinent to note that the applicant is principal contractor and providing supply of service to government entities as composite works contracts per provision of 2(119) such as design, erection, testing, commissioning, including pre-commissioning activities in relation to or incidental to installation of transformer of various capacity and providing through electrical infrastructures by extending 11 KV high transmission lines and Low transmission lines - the recipient of supply is actively engaged in commerce, business and trading of Electricity. On this count the composite works carried out by the applicant for the said Corporation are predominantly meant for trade and commerce. Therefore the applicant does not fulfill the conditions as prescribed in item no. (vi)(a) of Serial number 3 of Notification No. 11/2017 - Central Tax (Rate) dated 28-06-2017. The applicant is therefore not eligible for the concessional rate of 6% CGST and 6% KG ST under item no. (vi)(a) of Serial number 3 of Notification No.11/2017 - Central Tax (Rate) dated 28-06-2017 - The composite supply of works contract provided by the applicant is taxable at the rate of 9% CGST and 9% KGST under item no. (ii) of serial no. 3 till 28.03.2019 and thereafter at the same rate under item no. (xii) of serial number 3 of the amended Notification No. 11/2017 - Central Tax (Rate) dated 28-06-2017.
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