TMI Blog2023 (12) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... e of tax is to be decided in terms of provisions contained in Section 14 of the CGST Act, 2017. In cases where advance is received or invoices are raised before 18.07.2022, GST rate applicable is 12% - In cases where advance is received and invoices are raised after 18.07.2022. GST rate applicable is 18%. - SHRI AMIT KUMAR AND SHRI HARILAL PRAJAPATI, MEMBER Represented by : None ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE UPGST ACT, 2017 M/s PPS Builders Private Limited, having registered office 122, Hari Enclave, Chandpur Road, Bulandshahar Uttar Pradesh - 203001 (hereinafter referred as the applicant ) having GSTIN-09AAGCP7968P1Z9, have filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with Rule 104 of the CGST Rules, 2017 and Section 97 of UPGST Act, 2017 read with Rule 104 of the UPGST Rules, 2017 in Form GST ARA-01 (the application form for Advance Ruling), discharging the fee of Rs. 5,000/- each under the CGST Act and the UPGST Act. 2. The applicant is a registered firm/assessee under the GST regime having GSTIN: 09AAGCP7968P1Z9. The Company carries on the business of the civil cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc and work contract supply to Central Govt. State Govt, and Local Authorities for historical monuments, canal, Dams, Pipelines, Plant for water supply etc. was enhanced from 12% to 18% vide notification No. 03/2022-Central Tax (Rate) dated 13.07.2022 w.e.f. 18.07.2022. Applicant has sought ruling with respect to the applicable rate of GST on work contract. 6. The applicant has submitted their interpretation of law as under- 6.1 The Aligarh Smart City Limited (ASCL) has awarded contract of Redevelopment of Carriageway, foothpath, vending zone covering ROW within ABD area of Aligarh Smart City(CW-23) on EPC mode (Package-1) at Aligarh to the Applicant and contract was executed on 27th December 2021. 6.2 The Govt, proposed to enhance the rate of tax from 12% to 18% on certain construction services relating to Roads, Bridges, Railways, Metros, Effluent Treatment Plant, crematorium, Historical monuments, Canals, Pipe lines, plant for water supply, Educational institutions, Hospital etc. and sub-contractor thereof and involving predominantly earthwork and sub contract thereof under GST w.e.f. 18.07.2022. This contract was awarded in the year of 2020-2021. The rates wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds or services. They also added that after introduction of GST Act in India, Works Contact Services would generally classify as contracts for continuous supply of services, the issuance of invoices in case of continuous supply of services prescribed in section 35(1) of the CGST Act 2017. So as per section 35(1) of the CGST Act 2017 in case of continuous supply of services the due date for issue of invoice is as under- (a) Due date of payment is ascertainable on or before the payment due date. (b) Due date of payment is not ascertainable: before or at the time when payment is received. (c) Payment is linked to completion of an event: on or before the completion of event. An application for advance ruling is being presented for obtaining the clarification about the rate of tax in the present case after the Notification No. 03/2022 dated 13.07.2022 and with effected from 18.07.2022. 7. The application for advance ruling was forwarded to the Central Jurisdictional GST Officer vide letter dated 23.06.2023 to offer their comments/views/verification report on the matter. The Additional Commissioner, SGST- Ghaziabad Zone -II has submitted his comments vide his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... personal hearings on 19.07.2023, 04.08.2023 and 08.09.2023. But they neither appeared for personal hearing on any of these dates, nor sought any adjournment/extension. Applicant was given sufficient time/opportunities. Now the case is being taken up for decision on merits. DISCUSSION AND FINDING 9. At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act 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 the same provision under the UPGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 10. We have gone through the Form GST ARA-01 filed by the applicant and observed that the applicant has ticked following issues on which advance ruling required- (1) Applicability of a notification issued under the provisions of this Act.. (2) Determination of the liability to pay tax on any goods or services or both. At the outset, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; . The Works contract services provided by the applicant was chargeable to GST @ 12% vide Notification 11/2017 - CT (Rate) as amended dated 28.06.2017. However subsequently vide Notification No 03/2022 dated 13.07.2022, the same was amended and enhanced to 18% w.e.f 18.07.2022. Consequent to the change in rate of tax during an ongoing continuous service. applicable rate of tax is to be decided in terms of provisions contained in Section 14 of the CGST Act, 2017. The same is as follows : Section 14. Change in rate of tax in respect of supply of goods or services.- Notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely:- (a) in case the goods or services or both have been supplied before the change in rate of tax,- (i) where the invoice for the same has been issued and the payment is also rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2022 29.11.2022 18% PPS/0011/22-23 15.01.2023 19.01.2023 18% PPS/0012/22-23 15.01.2023 19.01.2023 18% PPS/0013/22-23 15.01.2023 19.01.2023 18% PPS/0019/22-23 01-03.2023 03.03.2023 18% PPS/0020/22-23 01.03.2023 03.03.2028 18% PPS/0030/22-23 28.03.2023 31.03.2023 18% PPS/0031/22-23 28.03.2023 31.03.2023 18% PPS/0035/22-23 29.03.2023 08.05.2023 18% PPS/0003/23-24 04.05.2023 08.05.2023 18% PPS/0004/23-24 04.05.2023 08.052 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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