TMI Blog2019 (10) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided the rate of GST on the services supplied by way of construction of road/bridges. Thus, the services provided by the Applicant as sub-contractor to principal contractors continues to be covered under the Serial No. 3(iv) of the principal rate Notification No. 11/2017 which was inserted vide Notification No. 20/2017-Central Tax (Rate), dated 22-8-2017. - Rate of GST is 12%. - Order No. AAR/GST/PB/010 AAR/GST/19/426 - - - Dated:- 6-9-2019 - Ms. Parul Garg, Member (CGST) and Shri Navdeep Bhinder, Member (SGST) Shri Mohinder Kumar, Taxation Head and Rajan Mittal, Advocate, for the Assessee. ORDER Brief facts of the case : M/s. S.P. Singla Constructions Pvt. Ltd. (Applicant) is engaged in the business of construction, erection, commissioning and completion of bridges. The Applicant is situated in the State of Punjab in Sangrur at its premises H. No. 4408, Sunami Gate, Sangrur - 148001 and is registered under the Central Goods and Service Tax Act, 2017 (CGST Act) vide GSTIN No. 03AAGCS5773BIZK. 2. The Applicant is engaged as a sub-contractor to the main Contractors who have been awarded the construction c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds and Services Tax Act, 2017, read with Section 97(2) of the Punjab Goods and Services Tax Act, 2017, provides for the issues on which advance ruling can be sought. 97. (2) The question on which the advance ruling is sought under this Act, shall be in respect of, - (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 services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered? (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. It is observed that the queries of the applicant in para Ill is related to the question of classification of the 'Works Contract' services pertaining to construction, erection, commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-contractor to the main contractors who were in turn providing services specified in Serial No. 3(iii), 3(vi) and 3(vii) to Government. The entries at Serial No. 3(ix) and 3(x) are not applicable to the Applicant as they are applicable to services provided by a sub-contractor to main contractor who is in turn providing services specified in Serial No. 3(iii), 3(vi) and 3(vii) to the Government. Since the activity of construction of bridge for the Government is not specified in Serial No. 3(iii), 3(vi) and 3(vii), the activity of the Applicant is correctly classifiable under entry at Serial No. 3(iv). 9. The entry at Serial No. 3(iv) does not specify that it should be made applicable only to a contractor and not a sub-contractor. In the absence of such specification, it should apply to the services provided by sub-contractor also. 10. In this regard, the applicant has placed reliance on the following : (i) Ruling dated 11-7-2018 of the Authority of Advance Ruling, Maharashtra in the application filed by Shree Constructions. (ii) Ruling of the Authority for Advance Ruling, Kerala in the application filed by M/s. Mary Matha Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r commissioning of any immovable property wherein transfer of properly in goods (whether as goods or in some other form) is involved in the execution of such contract; 14. The Central Government notified rates applicable on the services vide Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 and Serial No. 3 of Notification provided for rate of GST on construction services as under : Sl. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 1 Chapter 99 All Services 2 Section 5 Construction Services 3 Heading 9954 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing Recommendations on GST Rate changes on services - (A) Exemptions/ Changes in GST Rates/ITC Eligibility Criteria 12 To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government; State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%. 17. Accordingly, the principal rate Notification No. 11/2017 was amended vide Notification No. 1/2018-Central Tax (Rate), dated 25-1-2018 to amend the entries at Serial No. 3(iv), 3(v) and inserted new entries at Serial No. 3(ix), 3(x), 3(xi) and 3(xii). The Composite Supply, pf Works Contract services provided by a sub-contractor to the main contractor were dealt with in entries at Serial No. 3(ix) 3(x) of the amended Notification No. 11/2017 and the same read as under : Sl. No. Chapter, Section or Heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment entity which were covered in Serial No. 3(iii), Serial No. 3(vi) and Serial No. 3(vii) of the principal rate Notification No. 11/2017. 19. The entry at Serial No. 3(iii) concerned with works contract services provided by a sub-contractor to the main contractor where the main Contractor is providing works contract services to a Government Entity by way bf construction, erection, commissioning, installation, completion of a historical monument/ archaeological site, canal/dam or other irrigation works, pipeline, conduit or plant for water supply/water treatment, etc. The entry at Serial No. 3(vi) concerned with works contract services provided by a sub-contractor to the main contractor where the main contractor is providing works contract services to a Government Entity by way of construction, erection, commissioning, installation, completion of (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or (c) a residential complex pred ..... 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