TMI Blog2020 (7) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... falls under the works contract and falls under entry no. (ii) of S.No.3 of the table of Notification No. 11/2017 - Central Tax (Rate), Dated: 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% - The applicant stated that they are receiving materials such as Power Transformers, loo Sqmm Conductor Station Transformer from the Contractee and the value of such materials is recovered from their RA bills issued on cost recovery basis by the Contractee. Applicability of Reverse Charge Mechanism - HELD THAT:- As seen from the said Notification, reverse charge is not applicable to the goods issued by a Contractee. However, the provisions of Section 15(2)(b) of CGST Act, 2017 which as follows, attract in such situations. Since APSPDCL and APEPDCL being the Contractees are recovering the cost of the materials that are used/consumed in the services provided to them by the applicant from the R.A. Bills issued, such cost recovered is to be included in the taxable value of the supply. - AAR No.33/AP/GST/2019 - - - Dated:- 31-10-2019 - SRI. D. RAMESH, AND SRI. M. SREEKANTH, MEMBER Represented by: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicable rate of GST on work agreement entered into with the APSPDCL APEPDCL as mentioned in the Annexures. Broad scope of work:- Supply and erection of iiNo's 33/11KV Indoor Sub stations and their connected lines in Z2 division of Visakhapatnam circle on turnkey basis Supply and erection of 33KV Inter linking lines in Srikakulam, Vizag and Vizianagaram Dists Turnkey Basis System improvement project works for erection of 2 nos 33/11kv GIS indoor Sub Stations at Vijayawada and I no. at 33/11kv GIS indoor Sub Station at Guntur and their connected lines on semi turnkey basis under IPDS Scheme . 3. Under which Notification the work would fall, for discharging the GST liability? 4. Whether for the value of materials recovered from RA bills issued on cost recovery basis by APSPDCL APEPDCL is liable to tax under RCM as per Notification No.13/2017 Central Tax (Rate) dated 28.06.2017 or not ? On Verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Assistant Commissioner, Auto Nagar. Circle of Vijayawada. Accordingly, the application has been forwarded to the respective Tax Authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time to time. 7. Discussion and Findings: We have examined the issues raised in the application. The taxability, classification of the services, applicable rate of tax etc., for the goods and services supplied or to be supplied, as governed under the provisions of respective GST Acts are examined. The Government of India vide Notification Nom/2017 - Central Tax (Rate), dated: 28th June 2017 notified the rate of GST applicable on supply of services. Under this notification for heading 9954 the applicable rate of GST is 9%.The said notification has been amended from time to time and till date five notifications are issued by the Government of India and the said amendment Notifications are as follows: 1) Notification No. - 20/2017 Central Tax (Rate), Dated -22/08/2017. 2) Notification No. - 24/2017 Central Tax (Rate), Dated -21/09/2017. 3) Notification No. - 31/2017 Central Tax (Rate), Dated -13/10/2017. 4) Notification No. - 46/2017 Central Tax (Rate), Dated -14/11/2017. 5) Notification No. - 01/2018 Central Tax (Rate), Dated -25/01/2018. Vide notification No. 24/2017 - Central Tax (Rate), Dated: 21/09/2017, Government of India by inse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh is having full control over the APSPDCL and APEPDCL and they are covered under the definition of Government Entities. Now we discuss the nature of work under taken by the applicant: The applicant is engaged in the execution of works awarded by M/s. APEPDCL and APSPDCL for 1) Construction of Indoor Sub-station with control Room and all civil works. 2) Electrical Works 3) providing bore well 4) Erection of 33 KV line with 100 Sqmm AAA conductor (DC) 5) Erection of 11 KV line with 100 Sqmm conductor 6) Erection of 33 KV UG cable 7) Erection of 11 KV UG cable. For all the civil works, where materials such as sand, metal, gravel etc., are involved, the rates are inclusive of seigniorage charges as fixed by the Competent Authority of Government of AP and the same will be recovered from the contract bills for remittance to the Government. Materials such as Power Transformers, 100 Sqmm Conductor Station Transformer will be supplied by department. In some agreements all the materials are in Contractor's scope. Now the works under discussion have been undertaken to execute/Implement various schemes for constructing sub stations, prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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