TMI Blog2021 (8) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... ontrol of the Ministry of Road Transport and Highways. It was set up as a central authority to develop, maintain and manage the National Highways entrusted to it by the Government of India. The principal rate Notification No. 11/2017 was amended vide Notification No. 1/2018-Central Tax (Rate), dated 25.01.2018 to amend the entries at Serial No 3 by inserting new entries at Serial No. 3(ix), 3(x), 3(xi) and 3(xii). The Composite Supply, of 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 dated 25.01.18. But the entry at serial No. 3(iv) was not clubbed in the newly created serial Nos. 3(ix) and 3 (x). Further, the said supply of service is excluded from the 18% tax rate entry newly enumerated at 3(xii) which reads as (xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) and (xi) - the supply of service rendered by the applicant falls under the item 3(iv) of the amended provisions of the notification 11/2017 - Central Tax (Rate) and the Rate of Tax applicable is 12%. Input tax credit - JCB, Road Roller, Grader, H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Building Roads Infrastructure Construction Private Limited (hereinafter referred to as applicant). 3. Brief Facts of the case: M/s. Building Roads Infrastructure Construction Private Limited (applicant) is an unregistered dealer expecting a contract for construction, erection, commissioning, widening of roads and completion of bridges for road transportation for use of general public. They act as a subcontractor to the main contractor who was awarded contract by NHAI to construction, erection, commissioning, widening of roads and completion of bridges and NHAI 16 (old NH 5) in the state of Andhra Pradesh. The execution of work takes place only In Andhra Pradesh. 4. Questions raised before the authority: 1. What is the classification of the 'works contract' services pertaining to construction, erection, commissioning and completion of 'Bridges and Roads' provided by the applicant as a subcontractor to the Contractors who have been awarded the construction contract pertaining to construction/widening of roads by the Government Entities such as National Highway Authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .3 (iv) 4. The Entry at serial No.3 (iv) does not specify that it should be made applicable only to a main contractor. Hence, it can be applicable as well to the subcontractor appointed by the main contractor. 5. Under GST Act the rate of tax should be decided on the nature of services rendered but not on the person who executed the services. 6. The following inward supply of goods will be received from registered GSTIN dealers and will be used in execution of works. The below goods are received and used in the course of business and furtherance of business. The applicant is under the opinion that he can claim input tax credit on the following inwards supplies received JCB, Road Roller, Grader, Hydra Crane, Transit Mixer, Generator, Excavator, Sensor- Paver. 7. It is further submitted that the entry (xii) of 9954 construction service does not apply to the service mentioned in SI. No. (iv) because of exclusion clause. In the circumstances explained above the applicant approached the Advance Ruling authority for clarification. 6. Personal Hearing: The authorised representative of the applicant, Sri K.V.J.L.N. Sastry, Advocate appeared in person for Personal Hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s entrusted to it by the Government of India. Hence, the instant case is qualified to fit in the above category. Accordingly, the principal rate Notification No. 11/2017 was amended vide Notification No. 1/2018-Central Tax (Rate), dated 25.01.2018 to amend the entries at Serial No 3 by inserting new entries at Serial No. 3(ix), 3(x), 3(xi) and 3(xii). The Composite Supply, of 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 dated 25.01.18. But the entry at serial No. 3(iv) was not clubbed in the newly created serial Nos. 3(ix) and 3 (x). Further, the said supply of service is excluded from the 18% tax rate entry newly enumerated at 3(xii) which reads as (xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) and (xi) above. Accordingly the supply of service rendered by the applicant falls under the item 3(iv) of the amended provisions of the notification 11/2017 - Central Tax (Rate) and the Rate of Tax applicable is 12% (CGST 6% + SGST 6%). 2. Eligibility of Input tax credit on JCB, Road Roller, Grader, Hyd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stant case, the applicant seeks clarification on the claim of input tax credit on inward supply of the following goods, JCB, Road Roller, Grader, Hydra Crane, Transit Mixer, Generator, Excavator and Sensor Paver, The inward supply of the above mentioned goods neither fall under works contract services as per Section 17(5) ( c) and these goods received by the applicant are made use of for the construction of an immovable property, which is certainly not on his own account as per section 17(5) (d). As a matter of fact, the applicant carries out construction not on his own account, but as a subcontractor to the main contractor who was awarded contract by NHAI. In light of the facts submitted by the applicant, thus it is clear that the clauses of blocked credits under section 17(5) (c) (d) are not applicable to the instant case and thus eligible for claiming Input Tax Credit subject to the requisite conditions as mentioned in the Section 16 (2) of the CGST Act, 2017. In view of the above foregoing it is ruled as under. RULING (Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017) Question : What is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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