Court rules activities not subject to GST post-implementation, applicant's questions non-maintainable.

The court held that all questions raised by the applicant regarding the liability to pay GST on invoices and proposed reimbursements from ONGC were non-maintainable. The court found that the activities in question did not pertain to the supply of goods or services being undertaken or proposed to be undertaken post-GST implementation. Therefore, the provisions of the CGST Act regarding liability to pay GST were not applicable in these circumstances. Consequently, the court did not provide answers to the questions raised by the applicant.

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Issues Involved:

1. Liability to pay GST on Tax Invoice No. 01 dated 25/06/2018 for civil and interior work done for M/s Oil & Natural Gas Corporation Ltd. (ONGC).
2. Applicable rate of tax if the liability to pay GST on the above invoice is affirmed.
3. Liability to pay GST on proposed reimbursement of Rs. 1,92,50,247 from ONGC towards operational site expenses and rectification of water damages.
4. Applicable rate of tax if the liability to pay GST on the proposed reimbursement is affirmed.

Issue-wise Detailed Analysis:

Issue 1: Liability to pay GST on Tax Invoice No. 01 dated 25/06/2018 for civil and interior work done for ONGC

The applicant, M/s Woodkraft India Ltd, completed the work under a contract awarded by ONGC before the GST regime, with the work completed by 31/01/2016. The tax invoice (R.A. Bill No. 22) was raised on 25/06/2018, during the GST period, with GST @ 18% levied. The applicant contended that this invoice pertains to an upward revision in price and thus falls under Section 142(2)(a) of the CGST Act, deeming it an outward supply liable to GST.

However, the Authority observed that the amount mentioned in RA Bill No. 22 is payable under the original contract value, not an upward revision. The work was completed before the GST regime, and the invoice was raised post-GST implementation. Therefore, the provisions of Section 142(2)(a) of the CGST Act do not apply. The activities undertaken do not pertain to the supply of goods or services being undertaken or proposed to be undertaken post-GST implementation. Thus, the question is non-maintainable under Section 95 of the GST Act.

Issue 2: Applicable rate of tax if the liability to pay GST on the above invoice is affirmed

Given that the first question is non-maintainable, the second question regarding the applicable rate of tax is also non-maintainable and not discussed further.

Issue 3: Liability to pay GST on proposed reimbursement of Rs. 1,92,50,247 from ONGC towards operational site expenses and rectification of water damages

The applicant claimed additional expenses due to the extension of the project completion period and rectification of water damages, which were disputed by ONGC. An Outside Expert Committee (O.E.C.) recommended reimbursement of Rs. 1,92,50,247. The applicant contended that this reimbursement is an upward revision in price under Section 142(2)(a) of the CGST Act, making it liable to GST.

The Authority found that the additional claim pertains to services rendered during the service tax regime, not an increase in the original contract value. The reimbursement is for services completed before the GST regime, and thus, the activities do not pertain to the supply of goods or services being undertaken or proposed to be undertaken post-GST implementation. Therefore, the question is non-maintainable under Section 95 of the GST Act.

Issue 4: Applicable rate of tax if the liability to pay GST on the proposed reimbursement is affirmed

As the third question is non-maintainable, the fourth question regarding the applicable rate of tax is also non-maintainable and not discussed further.

Order:

All questions raised by the applicant are non-maintainable in view of the discussions made above and hence, are not answered.

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