GST @12% APPLICABLE ON CIVIL WORKS FOR DRAVYAVATI RIVER PROJECT-TATA PROJECTS ADVANCE RULING

GST @12% APPLICABLE ON CIVIL WORKS FOR DRAVYAVATI RIVER PROJECT-TATA PROJECTS ADVANCE RULING

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Before the Bench of:

1. Nitin Wapa, Member (Central Tax)

2. Sudhir Sharma, Member (State Tax)

Case Title :- Tata Projects Limited

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2018-19/01

Date of Judgement/Order- 27th April 2018

IMPORTANT PARAGRAPHS

Para No. 5. Applicant’s Questions(s) on which Advance Ruling is sought:

(i) The nature of Services whether covered under Sl.no.3(vi)(a) of notification no.11/2017 – Central Tax (Rate) dt.28^th June 2017 amended with notification no.24/2017Central Tax (Rate) dated 21.09.2017 and further amended with notification no.31/2017-Central Tax (Rate) dated 13.10.2017?

(ii) What is the Rate of GST applicable for the Project?

(iii) lf applicable rate of GST @12%, what is the rate of GST applicable on subcontractor leg?

Para No. 7. The issue involved in this case is, whether Jaipur Development Authority is covered under the status of Government Authority/ Entity or not? and the nature of Services provided under the contract are covered under Sl.no.3(vi)(a) of notification no. 1 1/2017 Central Tax (Rate) dt.28^dl June 2017 amended with notification no.24/2017-Central Tax (Rate) dated 21.09.2017 and further amended with notification no. 31/2017-Central Tax (Rate) dated 13.10.2017 or not? What is the GST rate applicable on subcontractor leg ?

RULING

Para No. 9. In view of the foregoing, we rule as under:-

The Services provided by M/S TPL — SUCG Consortium to Jaipur Development Authority under Contract awarded to them vide their LOA No. JDA/EE-07/2016/D-662 dated: 04.03.2016 are covered under Notification no. 11/2017 – Central Tax (Rate) dt.28th June 2017 (Notification no. (56)FD/Tax/2017-Pt-1-49(S.T.) dt.(lt. 29th June 2017), amended with Notification no.24/2017-Central Tax (Rate) dt. 21st Sept. 2017 (Notification no. F.12(56)FD/Tax/2017-90(S.T.) dt. 21st Sept. 2017) and further amended vide Notification no. 31/2017 — Central Tax (Rate) dt. 13 th Oct. 2017 ( Notification no. F.12(56)FD/Tax/2017-Pt-111-106(S.T.) dt. 13th Oct. 2017 ) and GST @12% (i.e. CGST 6% + SGST 6%) is applicable on the services provided under the said contract. This rate is also applicable to the sub-contractor leg under the said contract as inserted in the Notification no. 01/2018 dt. 25th January 2018 ( Notification no. F.12(56)FD/Tax/2017-Pt-11-166(S.T.) (lt. 25th January 2018).