9911796707
TMI Blog2020 (11) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... der through RITES Ltd. for "Execution of Earthwork, in formation, Construction of Minor Bridges, Blanketing, P. way linking works including supply of P-way fittings, Track Ballast, PSC Sleeper, and Points Crossings in connection with construction of Railway Infrastructure from Kotarila Station to 3/771 Km LP, Proposed CKRU, CKRD lines including Proposed CKR Station, POR Section form Ch. 1/00Km. to 6/449 Km except POR Portion and 100 metre approach bank on either side, Both Y-conn. (North and South) and Kotarila Station to 13/280 KM TM of NTPC Railway Siding, M/s KCC-MBBL (Joint Venture) (hereinafter referred to as the "Main Contractor") participated in above tender work and received the above contract work. The Main Contractor has awarded the above work on back to back basis to the Applicant with all the terms and conditions and specification of the original tender. All the purchases and execution of the above work is being done by the applicant M/s Shanti Enggicon Private Limited. 2.1 The Government of Chhattisgarh Mining Department vide Notification No. F7-29/2012/12 dtd. 05.03.2018 has imposed royally on Soil used in earthwork and also charged the royalty rate structures of cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks including supply of P-way fittings, Track Ballast, PSC Sleeper, and Points & Crossings in connection with construction of Railway Infrastructure from Kotarlia Station to 3/771 Km LP, Proposed CKRU, CKRD lines including Proposed CKR Station, POR Section form Ch. 1/00Km. to 6/449 Km except POR Portion and 100 metre approach bank on either side, Both Y-conn. (North and South) and Kotarlia Station to 13/280 KM TM of NTPC Railway Siding" has been allotted to the applicant on back to back basis with all the responsibilities to complete the work and thus applicant paid the royalty to State Government from his bank account by selecting the Tax Payer name of Main Contractor (Since the tender is allotted to main contractor). All the cost for getting royalty clearance from the Mining office is borne by the applicant. In such a case, the project work is executed by the Applicant and also engaged in earthwork formation work. The applicant is also paying the royalty challan from its bank account and accordingly it was their contention that it will be deemed that it is the applicant who has received services from the Government and GST shall be paid under RCM by the applicant on such royalty c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government from his bank account by selecting the Tax Payer name of Main Contractor as the tender is allotted to main contractor and all the cost for getting royalty clearance from the Mining office is borne by the applicant. In the present case, the mining right so granted for mining of soil is covered under the sub heading 997337 which specifies - 'Licensing services for the right to use minerals including its exploration and evaluation'. It is further seen that this gets covered under entry no. 17 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017, though the aforementioned service is not covered in any of the specifically mentioned descriptions of -entry no 17, resultantly it qualifies being categorized in the residual clause / serial number of entry no 17, wherein it has been specified that the rate applicable for such service should be of same rate as applicable for the supply of like goods involving transfer of title in goods. Annexure to Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017, prescribing therein the Service Accounting Code for each type of services, reads as under:- Heading 9973 Leasing or rental services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act; Further, Reverse Charge Mechanism is applicable for certain notified services as mentioned in Notification No. 13/2017 - Central Tax (Rate) dated 28.06.2017. As per Sl. No. 5 to the said Notification, services supplied by the Central Government, State Government, Union territory or local authority to a business entity attracts GST, under reverse charge basis by the recipient of such services. The applicability thereof of GST rate for the aforementioned service is to be based on the classification of service. In the present case, as discussed above the mining rights so granted is covered under the sub heading 997337 that specifies - 'Licensing services for the right to use minerals including its exploration and evaluation', covered under entry no. 17 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 attracting the same rate as applicable for the supply of like goods involving transfer of title in goods. On perusal of the abovementioned provisions, it is evident that the business entities availing mining rights including its exploration and evalua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 15 for payment of GST, considering the same as part of supply of value for supply of the aforesaid services / activity rendered by the applicant to the main contractor, we would like to refer to the provisions of Section 15 of CGST Act, 2017 which reads as under:- SECTION 15. Value of taxable supply. - (l) 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 the recipient of the supply are not related and the 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) in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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