TMI Blog2019 (1) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.” - In the instant case the applicant applicant has been awarded works contract for raising a Dam as per the requirement/specifications provided by the recipient. Whether the benefit of the N/N. 39/2017 will be available in the present case? - Held that:- It is evident that the work order is for supply of services with material. It is also seen from the work order that the first four part of the work order is related with clearing of earth, excavation, supplying & laying of earth and impervious clay. The major part of the contract involves earth work i.e., more than 75% of the work involves earth work - Since the major part of the work order, i.e., about 96%, is ‘Earth Work’, the said work order qualifies for the benefit of Serial No 3 of notification 39/2017 dated 13.10.2017 issued under the GST Act, being Composite supply of works contract as defined in clause 119 of sec-2 of the CGST Act, 2017, involving pre dominantly earth work i.e. constituting more than 75% of the value of work in contract) provided to Central Government, State government, Union Te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority or a board or any other body including a society, trust, corporation which is - i) Set up by an act of parliament or State legislative, or (ii) Established by any government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central government, State Government or Local Authority. 4. In the present instance 100% of the equity share is held by the President of India M/s. Uranium Corporation of India Ltd., Jadugoda. 5. The applicant sought Advance Ruling on the following questions/issues: (i) Whether M/s. Uranium Corporation of India Ltd. -Comes under the Purview of Government Entity. (ii) What will be the rate of GST on the above attached work order. 6. As per Section 97(2) of the Central Goods and Services Tax Act, 2017(herein after referred to as the CGST ACT, 2017) and Jharkhand Goods and Services Tax Act, 2017 empowers the Advance Ruling authority to decide the following issues:- (a) classification of any goods or services or both (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4500 SqM 10.00 8,45,000/- Earth work in excavation in the following types of soils up to any depth, for all lifts, including bailing/pumping out any water accumulating inside the excavation adequate protection during excavation, drilling, blasting and transporting the excavated spoil/materials after stripping of top soil as per specification to the designated area/places stacking of usable and disposal of excess of unusable material all complete as per drawing specification and direction of Engineer for any lead within acquired area for lead of 100M 500 Cu.M 150 75,000/- Supply and transport of earth of specified quality (as per specification and drawing) from any source including all taxes, any filing the same in embankment in random fill zone in layers not exceeding 250mm measured loose in proper profile to various heights above existing ground level after stripping of top soil as per specification, watering of each layer in the stipulated manner as per specification and / or direction of Engineer and compaction by mechanical means (Dozer Static Vibratory rol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant s understanding/interpretation of law in respect of the issue. 11. In view of the above, we proceed to deliver Advance Ruling on the two questions, i.e. (i) Whether M/s. Uranium Corporation of India Ltd. - Comes under the Purview of Government Entity; and (ii) What will be the rate of GST on the above said work order. 11.1 By going through the definition, government entity means- (i) set up by an Act of Parliament or State Legislature, or. (ii) established by any government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government or a local authority. In the instant case, the 100% equity of M/S Uranium Corporation of India Ltd is held by the President of India. Accordingly, M/s. Uranium Corporation of India Ltd. is a government entity. 11.2 The second issue is-what will be the rate of GST on the said work order? -We find that the work order awarded is for the Raising of western side Tailings dam from RL 195 M to RL 198 M at TURAMDIH . We also find that the total value of the work order for raising tailing dam is ₹ 16,48,41,750/-. 11.3 Under the GST, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made of earth. The Wikipedia defines Earth Work as Earth work are engineering works through the processing of parts of earth surface involving quantities of soil or unformed rocks. After going through different definitions of earth work, we find that Bulk earthworks include the removal, moving or adding of large quantities of soil or rock from a particular area to another. They are done in order to make an area of suitable height and level for a specific purpose. 12.2 It is evident that the work order is for supply of services with material. It is also seen from the work order that the first four part of the work order is related with clearing of earth, excavation, supplying laying of earth and impervious clay. The major part of the contract involves earth work i.e., more than 75% of the work involves earth work, we hold the same. 12.3 Since the major part of the work order, i.e., about 96%, is Earth Work , we find that the said work order qualifies for the benefit of Serial No 3 of notification 39/2017 dated 13.10.2017 issued under the GST Act, being Composite supply of works contract as defined in clause 119 of sec-2 of the CGST Act, 2017, involving pre dominantly ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
