TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 315
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....activity of construction, erection, commissioning, installation of bridges by the Government/ Government Entities. However, vide the present application, the Applicant is seeking Advance Ruling on the classification of services supplied by it under the contracts for construction, erection, commissioning, installation of bridges wherein it has been engaged as a sub-contractor. 3. For the purpose of present Application, the Applicant has placed reliance on the contract awarded by the NHAI tb M/s. M.G. Contractors Pvt. Ltd. for four-laning of Kharar-Kurali section of NH - 21 from Km. 15.765 to Km. 29.900 (existing chainages) (New NH - 205) in the State of 'Punjab on EPC mode vide Letter of Award (LOA) NHAI/K-K/PB/NH - 21/2015/2367, dated 24-92015 on terms and conditions stated therein. 4. The contract awarded by the NHAI to M.G. Contractors Pvt. Ltd. involved construction of road over bridge (ROB) which was sub-contracted by M.G. Contractors Pvt. Ltd. to the Applicant vide work order dated 8-9-2017 (for construction of ROB at CH-26+880 crossing SHRIND - MORINDA - KURALI NANGAL Railway line) on the terms and conditions specified therein. 5. In this background, the Ap....
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....uling by the Punjab State Advance Ruling Authority. V. Submissions by the Applicant : The Applicant has submitted as under : 6. The classification and rates applicable on supply of service are provided in Notification No. 11 / 2017-CentraI Tax (Rate), dated 28-6-2017. 7. Serial No. 3 of Notification No. 11/2017 provided for rate of GST on construction services. The activity of the applicant falls under entry at Serial No. 3(iv) of Notification No. 11/2017 which provides as under : Sl. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 1 Chapter 99 All Services - - 2 Section 5 Construction Services - - 3 Heading 9954 (Construction services) (iv) Composite supply of works contract as defined in Clause (119) of Section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, - (a) a road, bridge, tunnel, or terminal for road transportation for use by general public ..." 6 - 8. That the other competing entries are entries at Seri....
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....sions and statements" the following issue merit careful consideration for the favour of the final decision : "Classification of the 'Works Contract' services pertaining to construction, erection, commissioning and completion of 'Bridges' provided by the applicant as a sub-contractor to the Contractors who have been awarded the construction contract pertaining to construction/widening of roads by the Government Entities such as National Highways Authority of India." 12. The Applicant is engaged in the activity of erection, construction, installation, completion and commissioning of Bridges which is an immovable property, the supplies made by the Applicant as a sub-contractor qualifies as a works contract under the CGST Act, 2017 which has been deemed as a service in terms of Para 6(a) of the Schedule-Il of the CGST Act, 2017. 13. Section 2(119) of the CGST Act, 2017 defines 'works contract' as under : " "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wher....
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....%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government; State Government, Union territory, a local authority, a Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%. 17. Accordingly, the principal rate Notification No. 11/2017 was amended vide Notification No. 1/2018-Central Tax (Rate), dated 25-1-2018 to amend the entries at Serial No. 3(iv), 3(v) and inserted new entries at Serial No. 3(ix), 3(x), 3(xi) and 3(xii). The Composite Supply, pf Works Contract services provided by a sub-contractor to the main contractor were dealt with in entries at Serial No. 3(ix) & 3(x) of the amended Notification No. 11/2017 and the same read as under : Sl. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 3 Heading 9954 (Construction services) (ix) Composite supply of works contract as defined in Clause (119) of Section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified....
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....ruction, erection, commissioning, installation, completion of (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule-Ill to the Central Goods and Services Tax Act, 2017. The entry at Serial No. 3(vii) concerns with works contract services provided by a sub-contractor to the main contractor where the main contractor is providing works contract services to a Government Entity which involves predominantly earth work (that is, constituting more than 75 per cent. of the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Governmental Authority or a Government Entity. 20. In the present case, the Applicant has sought advance ruling only in respect of a situation where the main contractor is providing works contract services in respect of constructio....