TMI Blog2019 (10) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... erial must be considered, not only in terms of its physical properties, but on the conditions in which it is to be used, and the methods of compaction - Thus the activity to be carried out by the applicant is restricted to Earth Work only. The supply made by the applicant is a supply of construction service for Earth Work and related work and is of independent nature, and cannot be categorised as construction of road as classified under Entry number 3(iv) of the Notification No 11/2017-CT (Rate) dated 28.6.2017 (as amended). The activity carried out by the applicant does not involve supply of goods whatsoever in any manner and it's supply of services for Earth Work and other related works. Thus the said activity does not fall unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and / or Services or both; e. determination of the liability to pay tax on any goods or services or both; Further, the applicant being a registered person (GSTIN is 08ADDPC0346F1Z5 as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: The applicant is a proprietorship concern engaged in providing works contract services. That the applicant was registered under the erstwhile tax regime and was discharging service tax on works contract services only and has undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or). In view of the above activities, a question is arising as to whether the said transaction shall be treated as supply of service as composite supply of works contract as defined under clause 2(119) of the CGST Act 2017 supplied by way of supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a road under entry number 3(iv) of the Notification No 11/2017-CT (Rate) dated 28.06.2017 and is taxable at the rate of 12% 2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT: What shall be rate of GST on activity of sub-contract for earthwork in relation to construction of access controlled Nagpur-Mumbai Super Communication Expressway (Maharas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant (hereinafter the agreement). The scope of work as defined under the agreement includes Excavation in soil, hard rock excavation, embankment, sub-grade, shoulder, median fill etc. Earthwork involves the removal of topsoil, along with any vegetation, before scraping and grading the area to the finished 'formation level'. This is usually done using a tractor shovel, grader or bulldozer. Below the formation level, the soil is known as the 'subgrade'. Most earthworks are formed by cut-andfill, and the type of 'fill' material must be considered, not only in terms of its physical properties, but on the conditions in which it is to be used, and the methods of compaction. Thus the activity to be car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low:- According to Section 8 of GST Act, 2017, the tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and (b) .. Further, as per Section 2(30) composite supply is defined as (30) composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Further principal s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of goods. The given activity is thus a Construction Service of Site Preparation falling under heading Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling and boring and core extraction, digging of trenches . The above said construction service is classifiable under SAC 995432 of Annexure to Notification No. 11/2017 -Central Tax (Rate) dated 28.06.2017 (as amended) and attracts GST @ 18% (SGST 9% + CGST 9%). The relevant portion of above said Notification No. and its Annexure is reproduced below:- Annexure: Sl.No. Chapter, Section Heading or Group Service Cod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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