TMI Blog2022 (4) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... alue plus the original value of the contract will be the transaction/taxable value u/s 15 of the Act, on which GST must be discharged by the applicant. - GST-ARA-44/2020-21/B-41 - - - Dated:- 31-3-2022 - SHRI. RAJIV MAGOO, AND SHRI. T. R. RAMNANI, MEMBER No. GST-ARA-44/2020-21/B-41, Mumbai, dt. 31.03.2022 PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act respectively] by M/s. B P Sangle Constructions Pvt. Ltd. the applicant, seeking an advance ruling in respect of the following question. NHAI has awarded a contract for construction of road to the applicant vide letter dt 01.05.2017 for agreed price of ₹ 65,90,98,099/- which included VAT Tax as tender was awarded before the appointed date. However, during the course of completion of service, i.e. construction of road as per contract, there happens escalation in value. Such escalation in value is adde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price shall be liable for payment of GST as per the said provision. Applicant Submission dated 08.02.2022 2.4 The applicant is engaged in construction of Public Road for Govt. Authorities like Zilha Parishad, Municipal Corporation, etc., and also provides construction service for private parties. 2.5 Prior to 01.07.2017 i.e. before GST regime, National Highways Authority of India (in short NHAI ), invited proposals for the work of development, maintenance and management of National Highway No 3 including section from km 380.000 km to 440 km on various locations on the section of National Highway No 03 and the tender was awarded to the Applicant vide Letter of Acceptance (LOA) under F.No. NHAI/MUM/NSK/PNG/EPC-l/2017-18/202 dated 01.05.2017. 2.6 Activity to construct road for public was exempted from payment of service tax vide Sr No. 13((a) of Notification No. 25/2012-ST dated 20.06.2012 under the Erstwhile Service Tax laws. Therefore, when said contract was awarded, only Maharashtra VAT was applicable hence taken into consideration and the said contract price was including of VAT @ 5% only. Thus, contract price of ₹ 65, 90, 98,099.67, included Maharashtr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01.2022. Applicant's authorized representative, Shri. Shrikant Kale was present. Jurisdictional officer Shri. Macchindra Donde, ACST, NAS- VAT-D-003, Nashik was also present. 05. OBSERVATIONS AND FINDINGS: 5.1 We have gone through the documents on record and have considered the submissions, both oral and written, made by the applicant. The jurisdictional officer, inspite of having attended the preliminary hearing as well as the final hearing, has not made any written submissions in the matter. 5.2 Briefly stated, M/s. B P Sangle Constructions Pvt. Ltd., the Applicant was awarded a contract by NHAI for construction of roads during the pre-GST period but the contract was executed only after the GST Laws introduced in the country. Further, as per the submissions there was an escalation in the contract value and accordingly, the applicant has raised the question whether GST has to be paid on the enhanced value also. Since the impugned supply was started and undertaken by the applicant only during the GST period, we are of the opinion that the GST Laws will be applicable in the instant case and therefore the relevant provisions of CGST Act, 2017 shall be applicable whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded ........................... : Provided ............................. (4) ........................................ (5) .................................. (6) .................................... 5.4.2 As per the applicant's submissions, there was no supply during the pre-GST period and no invoice was also raised during the said period. The impugned service was provided entirely during the GST period and therefore in view of Section 13, the time of supply is during the GST era and therefore for ascertaining the value of service, the relevant provisions of CGST Act, 2017 shall apply. 5.5.1 Section 15 of the CGST Act, 2017 deals with Value of taxable Supply. As per Section 15(1) of the Act, the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and recipient of the supply are not related and the price is the sole consideration for the supply. 5.5.2 Thus section 15 (1) says that the value of a supply of goods or services or both shall be the Transaction value and the transaction value in the subject case will al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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