GST PAYABLE ON SERVICES BY SUB-SUB-CONTRACTOR TO SUB-CONTRACTOR PERTAINING TO IRRIGATION,CONSTRUCTION (GST AAR GUJARAT)

GST PAYABLE ON SERVICES BY SUB-SUB-CONTRACTOR TO SUB-CONTRACTOR PERTAINING TO IRRIGATION, CONSTRUCTION (GST AAR GUJARAT)

GUJARAT APPELLATE AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX

Case Name: Shreeji Earth Movers

(GST AAAR Gujarat)

Appeal Number: Advance Ruling No. GUJ/GAAAR/APPEAL/2023/02
Date of Judgement/Order: 29th March 2023

RULING

Para 9. The appellant has further contended that though they are sub-contractors providing civil construction services to the main contractor, which may not be covered in the Serial 3(ix), it is their belief that the rate of GST leviable in their case is 12% which is the rate applicable for composite supply of works contract as defined in clause (119) of Section 2 of CGST Act, 2017. It is observed that the said entry entails benefit of concessional rate only to a sub-contractor of the main contractor for providing the services so specified. No tax can be levied and collected except according to the authority of law. There are plethora of judgments of various authorities where it is held that taxes are to be determined as per the taxing statue and benefit of concessional/Exemption Notifications is available only upon strict compliance of conditions mentioned therein. Reliance is placed on the decision of Hon’ble Supreme Court in the case of CCE Vs M/s Doaba Steel Rolling Mills [2011(269)ELT 298 (SC)] wherein it was held that once it is shown that an assessee falls Within the letter of law. He must be taxed however great the hardship may appear to the judicial niind. Further, in the case of Dilip Kumar and Company (reported at 2018-TIOL-302-SC-CUS-CB), the Apex Court held that exemption Notification should be interpreted strictly and the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. It is noted here that the appellant themselves have admitted that their case may not be covered under the said entry of the subject Notification.