NO GST ON SHIFTING OR RAISING OF POWER TRANSMISSION LINES BY NHAI- NOT A SUPPLY UNDER SECTION 7 OF THE GST ACT
RAJASTHAN AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
Case Title- M/s National Highway Authority of India
(GST AAR RAJASTHAN)
Advance Ruling No. RAJ/AAR/2019-20/09
Date of Judgment/Order- 28th May 2019
IMPORTANT PARAGRAPHS
Para No. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
(a) Whether there is any ‘Asset Transfer’ involved which is a supply leviable to GST in the work of shifting & raising of transmission lines owned by RVPNL by NHAI in the course of widening, modification & diversification of its highways after completion of this work?
(b) Without prejudice to the submissions made above, if there is an ‘Asset transfer’ which is a Supply under GST, then who is liable to pay GST?
(c) If above GST is to be paid by the Applicant, then the same will be exempt vide Entry 4 of Notification no. 12/2017- Central Tax (rate) dated 28.06.2017?
Para No.5. FINDINGS. ANALYSIS & CONCLUSION:
(h) In view of the facts discussed above in relation to definition of goods, supply and consideration under GST act, 2017 we find that assets constructed by the applicant do not fall under category of goods, thus no supply is involved. Therefore, the applicability of GST does not arise.
RULING
In view of the foregoing, we rule as follows:-
The asset constructed by the applicant does not fall under the category of “goods” (as defined under GST Act, 2017), therefore no supply is involved and accordingly GST is not leviable.
