GST CLASSIFICATION OF SUBCONTRACTED EARTHWORK FOR EXPRESSWAY- HELD AS SITE PREPARATION SERVICE @18%

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GST CLASSIFICATION OF SUBCONTRACTED EARTHWORK FOR EXPRESSWAY- HELD AS SITE PREPARATION SERVICE @18%

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- M/s Ashok Kumar Choudhary

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/20

Date of Judgment/Order- 3rd September 2019

IMPORTANT PARAGRAPHS

Para No. 2 OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:

What shall be rate of GST on activity of at sub-contract for earthwork in relation to construction of access controlled Nagpur-Mumbai Super Communication Expressway (Maharashtra Samruddhi Mahamarg)?

Para No. 5 FINDINGS, ANALYSIS & CONCLUSION:

  1. The sub contractor shall deploy all resources required for the works including machinery and manpower and SEL & PE shall have no liability in this regard. A B Enterprises shall be responsible and liable for its deployed resources including all requisite insurance for the same and shall keep SEL indemnified in this regard, including third party claims.
  2. The sub contractor shall be responsible for all type of maintenance and operation of the deployed machineries.
  3. A B Enterprises shall be responsible and liable to adhere to all prevalent laws and regulations applicable and imposed by the central government and state government, Municipal Corporation and any other authority as shall be related to the works.

RULING

The rate of GST on the work of earthwork will be 18% (CGST 9% + SGST 9%).

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