TMI Blog2019 (11) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... KV lines and industrial electrification works, Networking Automation Apartments /complex, Electrical works and allied services and this supply is neither covered under item (iii) or item (vi) and hence the supply of services by the applicant is not covered under item no. (ix) and hence gets covered only under item (ii) of the SI.No. 3 of the Notification No. 11/2017 -Central Tax (Rate) dated 28.06.2017 taxable at 9% under CGST Act and 9% under SGST Act. - KAR ADRG 41/2019 - - - Dated:- 16-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by : Sri Vaidyanathan, Charted Accountant ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS SERVICES TAX ACT, 2017 AND UNDER 98(4) OF THE KARNATAKA GOODS SERVICES TAX ACT, 2017 1. M/s P.S. Electricals, 76, CH-01, 8th Cross, 4th Main, Jayanagar, Mysore -570014, having GSTIN number 29ADQPP5361C1Z8, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 read with Rule 104 of CGST Rules 2017 86 KGST Rules 2017, in form GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Proprietary concern and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rminal bay works and the details are as under.- 1) WO: MEIL/Chimmadagi/Lis HTL1NE/143/2016-17 Dated 05-05- 2016. 2) WO: MEIL/KOPPAL LIS/CODE 3076/49/2016-17 dated 20-04- 2016 3) WO: MEIL/Chimmalagi/LIS/251/2013-14 dated 26.07.2013. 4) WO: MEIL/KOLAR LIS/536/2017-18 dated 23.06.2017 (Lift -01 K C Valley). 5) WO: ME1L/38/YETTINAHOLE PACKAGE-05/2017-18 dated 06-04-2017 6) WO: MEIL/38/ YETTINAHOLE PACKAGE-05/2017-18 dated 06.04.2017 7) WO: MEIL/ YETTINAHOLE WEIR-05/ 1061 /2017-18 dated 15-09-2017 8) WO: MEIL/MULWAD LIS(Pkg-03)/1168-2014-15 Dated 29-01-2015 9) WO: MEIL/Mamasapura LIS /794/16-17 Dated 06-10-2016 The above said works were mainly awarded to the Principal Contractor by the state government entities such as Krishna Bhagya Jala Nigam Limited, Karnataka Neeravari Nigam Limited and Karnataka Power Transmission Corporation Limited. The said works has been awarded prior to GST but the same have been amended during the post GST period. d. The applicant's argument is that the said works are mainly awarded to the principal contractor by state government entities such as Krishna Bhagya Jala Nigam Limited, Karnataka Neeravar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imited. Karnataka Neeravari Nigam Limited and Karnataka Power Transmission Corporation Limited, attracts CGST and SGST at six percent each. 7. FINDINGS DISCUSSION: 7.1 We have considered the submissions made by the applicant in their application for advance ruling as well as the additional submissions made by Sri N.Vaidyanathan, Charted Accountant, during the personal hearing. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. 7.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 7.3 The applicant has been awarded the sub contract works of supply, design, erection, transmission and commissioning of transformers of different capacities like 220 KV, 110 KV, 66 KV, 33 KV 11 KV lines and industrial electrification works, Networking Automation Apartments /complex, Electrical works and allied service by the principal contractor. This, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 9 - (iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act. 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal 6 - (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as food stuff excluding alcoholic beverages 6 - (vi) construction services other than (i), (ii), (iii), (iv) and (v) above 9 - 7.6 Later, the notification was amended by Notification No.24/2017 - Central Tax (Rate) dated 21-09-2017 and after the amendment, the entry No. 3 of the Notification No. 11 /2017 - Central Tax (Rate) dated 28.06.2017 read as under,- Sl.No. Chapter, Section, or Heading Description of Services Rate (per cent.) Condition 3 Heading 9954 (Construction Services) (i) Construction of a complex, building, civil structure, or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after the issuance of completion certificate, where required, by the competent authority or after its first occupation, which ever is earlier (Provisions of paragraph 2 of this notification s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of deceased. 6 - (v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) railways, excluding monorail and metro; (b) a single residential unit otherwise than as a part of a residential complex; (c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under- (1) the Affordable Housing in Partnership component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (e) post-harvest storage infrastructure for agricultural p ..... 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(ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 9 - (iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act. 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal 6 - (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent for units processing agricultural produce as food stuff excluding alcoholic beverages 6 - (vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration 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 predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017. 6 (vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2017 9 - (iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act. 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal 6 - (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance ..... 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(vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration 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 predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017. 6 (vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent, of the value of the works contract) provided to the Central Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. 2.5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. (xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii),(ix), (x)and (xi) above. 9 - ; 7.9 The nature of the contract between the applicant and the main contractor is verified. It is seen that the sub-contracts are covered under the item no. (ix) of SI.No. 3 of the Notification No. 1 1/2017 -Central Tax (Rate) dated 28.06.2017 and this is with effect from 25.01.2018. Earlier to this, the nature of the service provided by the applicant to the main contractor was covered under item no. (ii) of the SI.No. 3 of the Notification No. 11/2017 -Central Tax (Rate) dated 28.06.2017 taxable at 9% under CGST Act and 9% under SGST Act. The item no. (ix), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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