9911796707
TMI Blog2021 (1) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... , namely WAPCOS ltd. which is detailed hereunder: (i) Work of Physical Inspection of Saurashtra Branch Canal (0 to 104.47 km.) including walk through survey, taking cross sections at 30 m interval with DGPS, Geotechnical analysis of soil used in embankment, Slope Stability Analysis, suggesting remedial measures, preparation of estimates, plans, DTPs, including technical specification of remedial measures item suggested, preparation of draft report, integrating the result of Under Water survey in the final report based on details supplied by SSNNL, final compliance of the remarks raised by SSNNL etc., (ii) The Contract price is Rs. 1,43,85,300/- and there is a provision in the agreement between SSNNL and WAPCOS on 03.11.2017 that "GST at prevailing rates shall be paid extra by the Client." (iii) WAPCOS ltd. (the main consultant) has in turn, assigned this work to Poseidon Hydro Infratech (i.e. sub-consultant and the present applicant). In the agreement between WAPCOS ltd.(the main consultant) and Poseidon Hydro Infratech(i.e. sub-consultant and the present applicant), the provision of GST is as under: - "GST at prevailing rates shall be paid extra subject to the same is paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein SSNNL has made it clear that GST shall be applicable. (4) However, in the present case, SSNNL is not making any payment of GST to the main consultant i.e. WAPCOS and in turn, WAPCOS is not making any payment to Poseidon Hydro Infratech (i.e. sub-consultant and the present applicant). Copy of communication from SSNNL to WAPCOS in this regard has been attached. Applicant has stated that this is just an opinion as no official circular in this regard has been issued by SSNNL. WAPCOS is providing technical consultancy services to SSNNL for different assignments. Thus, all the consultancy services provided by WAPCOS to SSNNL for this project is attracting the payment of GST, and no exemption in this case can be granted. (5) SSNNL vide their letter No.SSNN/CGM(A/cs)/Acct/18-19/148 dated 25.03.2019(copy submitted) has sent a copy of their GST consultant, M/s. Mukesh M.Shah & Co's opinion, saying that SSNNL is not required to reimburse any GST on the referred services. SSNNL has not issued any circular or orders in this regard and has simply relied on the opinion of their consultant. If SSNNL believes that GST is not applicable on the consultancy services availed by SSNNL, they sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions made by the applicant in their application for advance ruling as well as the arguments/discussions made by their representative Shri Rajesh Bhatt, Director at the time of personal hearing. We have also 6. At the outset, we would like to state that the provisions of both the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 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 similar provisions of the GGST Act. 7. Based on the submission of the applicant as well as the arguments/discussions made by the representative of the applicant during the course of personal hearing, we find that as per agreement of M/s. SSNNL with M/s. WAPCOS, M/s. WAPCOS is to provide various type of technical consultancy services to SSNNL to execute the Physical Inspection of Saurashtra Branch Canal (which is having a length of 104.46 kms.). M/s. WAPCOS has in turn, made an agreement with the applicant for the same vide which the applicant will provide these services to M/s. SSNNL through M/s. WAPCOs i.e. the applicant is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... results in a supply of goods or services or both, within the meaning of that term. We find that there is no provision for seeking Advance Ruling in respect of third parties or parties who are not directly connected to the applicant by way of supply of services or goods. The very purpose of the Board for making the provision of Advance Ruling in the CGST Act, 2017 is to help the applicant in planning his activities which are liable for payment of GST, well in advance. It also brings certainty in determining the tax liability, as the ruling given by the Authority for Advance Ruling is binding on the applicant as well as Government authorities. Further, it helps in avoiding long drawn and expensive litigation at a later date. Seeking an advance ruling is inexpensive and the procedure is simple and expeditious. It thus provides certainty and transparency to a taxpayer with respect to an issue which may potentially cause a dispute with the tax administration. 9. On going through the application filed by the applicant and as per their submission, the question on which Advance ruling is sought is in respect of the provisions of Section 97(2)(b) and Section 97(2)(e) of the CGST Act, 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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