9911796707
TMI Blog2022 (8) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred to as CGST/SGST Act) and the rules made there under filed by M/s State Industrial Development Corporation of Uttaranchal Ltd., (SIDCUL), 2911E, IT Park, Sahastradhara Road, Dehradun, Uttarakhand, 248001 (herein after referred to as the "applicant") and registered with GSTIN - 05AAHCS7324R2ZQ under the CGST Act, 2017 read with the provisions of the UKGST Act, 2017. In the application dated 02.05.2022, the applicant submitted that the work of Electrification and or Construction (Erection, installation and commissioning) of Electric Substations/ Increase in the capacity of Electric Substations etc. are being undertaken through M/s Uttarakhand Power Corporation Ltd. (UPCL) (a Government of Uttarakhand undertaking) and M/s Power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 5. As per the said sub-section (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (both Government of Uttarakhand Undertakings) for the work of Electrification and or Construction (Erection, installation and commissioning) of Electric Substations/ Increase in the capacity of Electric Substations etc. (ii) M/s UPCL & M/s PITCUL are not eligible to avail the Input Tax Credit (ITC) of the GST paid by them, on the Goods and Services supplied by different vendors. (iii) For the Works Contract given by them to M/s UPCL and M/s PITCUL, these two entities issue draft estimates wherein while arriving at the final price i.e. the transaction value for the purpose of payment of applicable GST, firstly they charge applicable GST on the value charged by different vendors and then on the said price other components namely Continge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price is the sole consideration for the supply. (2) The value of supply shall include- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent are not related and price is the sole consideration for the supply. It includes any amount which the supplier is liable to pay but which has been incurred by the recipient of the supply". 8.5 From the above wording of the statute it is clear that the value of 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 and in the instant case as admitted by the applicant, supply by M/s UPCL & M/s PITCUL includes the component of GST paid by them on the Goods and Services received by them from different vendors, while arriving at the transaction value of the Services supplied by them to the applicant. 8.6 We observe that M/s UPCL & M/s PITCUL ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the GST Act, 2017 and the GST is payable on transaction value so arrived. 10. In view of the discussions held above, we rule as under: RULING The component of GST as mentioned in the draft estimate (s) submitted by M/s PITCUL and M/s UPCL in respect of contract involving supply of equipment/ machinery & erection, installation & commissioning services with civil work, is the cost for them and is one of the many components which constitutes the transaction value for the supply in question and is the price actually payable (transaction value) for the said supply of goods & services (Under the draft estimates / contract referred to in the application) to the applicant and hence is in consonance to the provisions of the GST Act, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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