TMI Blog2019 (3) TMI 1567X X X X Extracts X X X X X X X X Extracts X X X X ..... specified under item (v) of the Sr. 3 of the said notification is completely fulfilled and therefore the services provided by the sub- contractor would attract concessional rate of 12% GST. There is no specific mention of subcontractor providing services in Sr. (v) as provided in item (ix) and (x) which were incorporated into the Notification 11/2017-C.T. by the amending notification 1/2018 dated 25.01.2018, there was no need to include such sub-contractors in the item (v) of the Notification as there was no confusion whether the sub-contractor will be eligible to such concessional rate of GST, since the activities described under item (v) of Sr, 3 of the notification are services specific. The service provider and the service recipient are immaterial for the determination of beneficiary of this concessional rate of GST. That is, if the works contract services provided by the main contractor or sub-contractor are pertaining to the railways, the concessional rate of 12% GST is allowed to the person who carries out the such works contract pertaining to railways. The ruling pronounced by the Advance Ruling Authority upheld. - Decided against the revenue. - MAH/AAAR/SS-RJ/15/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pertaining to railways remains the same works contract. As there is difference of opinion after reading of press release of 25 meeting of GST council dated 18-01-2018 and notification No 1/2018 dated 25-01 -2018, the party are not in position to levy correct rate of GST on original sub-contracting work pertaining to railways carried on by them for their main contractor. Accordingly, Advance Ruling was sought for clarification for rate of tax to be levied by the subcontractor to main contractor for original contract work pertaining to railways. D. The Advance Ruling Authority passed an order under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 and the questions were answered as under - Q. No. 1 : What Tax rate to be charged by the sub-contractor to main contractor on Works Contract Services (WCS) pertaining to railways original works contract? Answer : The tax rate to be charged by the sub-contractor to the main contractor would be @ 6% of CGST and 6% of SGST , in the present case. Q.No:2: Whether to charge tax rate of 12% GST or 18% GST? Answer : The tax rate to be charged woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on has classified all other Works Contracts relating to Construction services in head (xii) prescribing rate of 18%. (5) The minutes of meeting dated 18.01.2018 para-12 quoted by the Applicant has mention of Government Entity but doesn t specifically include WCS provided by sub contractor to main contractor in relation to Railways. (6) In view of the aforesaid grounds, the impugned Advance Ruling No. GST-ARA-09/2018-19/B-65 Mumbai, Dt. 11.07.2018 = 2018 (9) TMI 854 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA , is not legal and proper, and hence, it is prayed to: (a) Set aside the Order No. GST-ARA-09/2018-19/B-65 Mumbai dated 11.07.2018 = 2018 (9) TMI 854 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA , (b) Specify the rate of GST at 18% in terms of Notfn.No.01/2018-CT(Rate) dated 25.01,2018, wherein these services are classifiable as all other Works Contracts relating to Construction services in head (xii). (c) Pass any other order, as deemed fit, in the facts and circumstances of the case. Personal Hearing A personal hearing in the matter was conducted on 13.12.2018, when Shri Yogendra Yadav, Inspector, appearing on behalf of the Appellant, rei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this clause pertaining to the railways of the item (v) of Sr. 3 describing the Construction services under the Notification No. 11/2017 dated 28.06.2017 as amended by the Notification No. 1/2018 dated 25.01.2018, the composite supply of the sub- contractor i.e. M/S. Shree Construction to its main contractor is squarely covered under this item which provides for concessional rate of 12 % GST to such services. (9) The appellant, in the instant case, the Jurisdictional officer, have challenged the ruling given by the Advance Ruling Authority by contending that the activities carried out by the sub- contractor will not fall under item (v) of Sr. 3 of the Notification No. 11/2017 dated 28.06.2017 as amended by the Notification No. 1/2018 dated 25.01.2018, since there is no specific inclusion of WCS services provided by sub- contractor to main contractor. The Appellant further submitted that serial number (ix) and (x) inserted in the amending Notification No.01/2018-Central Tax (Rate) dated 25.01.2018, provides for the concessional rates of 12 % and 5% GST to those sub- contractors, who are providing works contract services to the main contractor providing services, specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant s contention that there is no specific mention of subcontractor providing services in Sr. (v) as provided in item (ix) and (x) which were incorporated into the Notification 11/2017-C.T. by the amending notification 1/2018 dated 25.01.2018 ,we are of the opinion that there was no need to include such sub-contractors in the item (v) of the Notification as there was no confusion whether the sub-contractor will be eligible to such concessional rate of GST, since the activities described under item (v) of Sr, 3 of the notification are services specific. The service provider and the service recipient are immaterial for the determination of beneficiary of this concessional rate of GST. That is, if the works contract services provided by the main contractor or sub-contractor are pertaining to the railways, the concessional rate of 12% GST is allowed to the person who carries out the such works contract pertaining to railways. The only condition in (a) of item (v) is that (a) There should be a composite supply of works contract as defined in clause (119) of section (2) of the CGST Act (b) It should be by way of construction, erection, commissioning, or installation of or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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