TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 225
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....ances of case, applicant is liable to pay GST on proposed reimbursement of Rs. 1,92,50,247/- from M/s Oil & Natural Gas Corporation Ltd., toward operational site expenses and claim toward rectification of water damages, pertaining to original civil & interior work contract awarded by M/s. Oil & Natural Gas Corporation Ltd. 4. If the ruling on above question is affirmative, kindly clarify rate of tax applicable thereon. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to "GST Act" would means CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by the applicant is as under:- 2.1 M/s. Woodcraft India Ltd (Applicant) is engaged in undertaking and execution of interior works and other works. M/s Oil & Natural Gas Corporation Ltd. (ONGC) has, vide Order No. MR/PO/4BP/BK/52 2013 dated 01....
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....nsurance Policy extension Rs. 33,27,925/- b) Bank Guarantee extension Rs. 18,36,535/- c) Hiring of Scaffolding Rs: 13,55,100/- Total Rs. 65,19,5601- 2.7 Applicant made claim of Rs. 1,40,28,820/- toward certain damages which took place on account of rain water seepage foil which contractor was not responsible. O.E.C. agreed to the claim and recommended to reimburse an amount of Rs. 1,27,30,687/- to an applicant. 2.8.a) Applicant issued final R.A. Bill. No 22 / Tax Invoice No 001 dated 25/06/2018 for civil & interior work to ONGC, Bandra - Kurla Complex, Mumbai 400 051. Details of which are as under. Value Rs. 2,42,09,594/- CGST 9% Rs. 21,78,863/- MGST 9% Rs. 21,78,863/- Total Rs. 2,85,67,321/ - 2.8 (b) Final summary of above bill as certified by M/s. Oil & Natural Gas Corporation Ltd. Supply amount Rs. 2,43,83,448/- Installation amount Rs. 37,26,285/- Service Tax Rs. 4,57,588/- Total Rs. 2,85,67,321/- 2.8 (c) Calculation of GST to be recovered from ONGC is as under: Total GST as per Tax invoice Rs. 43,57,727/- Less Amt. received by way of Service Tax Rs. 4,57,588/- Balance GST payable from M/S ONGC Rs. 39,00,139/- 2.9 As regard GST c....
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....oing contract, if there is upward revision in supply of goods or services, then such registered person should issue supplementary invoice or debit note and it should be deemed as outward supply under GST law. 2.12 Applicant has treated impugned contract as works contract under MVAT Act and paid taxes accordingly at composition rate under Section 42(3) of MVAT Act. Under GST law works contract supply is deemed as supply of services in view of Schedule II (6(a)) of CGST Act and therefore provision Section 13 of CGST Act, regarding time of supply would be applicable. "Section 13 of CGST Act: Time of supply of services: (1) The liability to pay tax on services shall arise at the time of supply; as determined in accordance with the provision of this section. (2) The time of supply of service shall be the earliest of the following dates namely: (a) the date of issue of invoice by, the supplier, if the invoice is issued within the period prescribed under Section 31 or the date of receipt of payment, whichever is earlier, or (b) the date of provision of service, if the invoice is not issued within the period prescribed under section 31 or the date of receipt of payment, whicheve....
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....hich can be said to be upward revision in price i.e. contract value. Therefore, provision of Section 142 (2)(a) would be applicable which deals with revision in price pertaining to ongoing contract. Section 142(2) (a) provides that, where in pursuance of ongoing contract, price of goods of services is increased after appointed day, then it shall be treated as outward supply by registered person under CGST Act and such person ski! issue supplementary invoice or debit note within thirty days from date of such price revision. In present case, as a result of O.E.C. report. dated 21/05/2019, there would be upward price revision in the ongoing contract and outward supply to the extent of such enhanced price and therefore, it should liable to tax under GST Act. Th applicant has not yet issued supplementary invoice or debit note, however considering mandatory time limit for issued of such invoice, will issue such invoices within 30 days of O.E.C. report. 2.16 Applicant has completed work awarded by ONGC of mainly interior and civil work to some extent. As per explanation note to scheme of classification of services under GST Act, it would be covered under Tariff- 995478 - other building c....
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....ermined whether or not the activities undertaken by the applicant pertains to the supply of goods or services or both being undertaker 'or proposed to be undertaken by the applicant. 5.3 From the perusal of activity undertaken by applicant as discussed earlier in this order in detail, it is observed that M/s Woodkraft India Ltd was holding registration under MVAT Act and Service Tax Law in pre-GST period and is also currently registered under GST Act. The applicant had undertaken the work of civil and interior in respect of M/s. Oil & Natural Gas Corporation Ltd. Issued to them vide order No. MR/PO/4BP/BK/52 2013 dated 01/10/2013. This work was completed upto 31/01/2016 i.e. during pre-GST period. The tax invoice (R.A. Bill No. 22) in respect of this completed work was raised by applicant on 25.06.2018 i.e. during GST period along with levy of GST @ 18% whereas as per the provisions of Under Rule 4A of the erstwhile Service Tax Rules, 1994, it was compulsory for a service tax assessee to issue a bill or invoice within 14 days from the date on which the taxable service was completed or the date on which the payment was received for the service, whichever came first. Applicant has c....
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....t." "Section 142 (11) (a) notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of the State; Section 142(11) (b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994;" 5.5 We observe that Section 142(10) allows the levy tax on goods or services under GST Act, that are supplied only after appointed day i.e. 01/07/2017: In respect of RA Bill No. 22, (issue in the first two questions raised by the applicant), the applicant has carried out and completed the total work before the appointed day and only billing is done after the appointed day and that too after a two year period. The applicant relies on the provisions of time of supply under Section 13 of GST Act. However, even as per the provisions under Section 13 (2) (b) of GST Act, time of supply will be date of provision of service, if the invoice is not issued within the prescribed period. So this is not the activity being undertaken or proposed to be undertake....
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....0,247/. This claim is over and above the cost agreed in the contract for the sanctioned work. 5.6.2 In this situation also, Applicant has contended that, the said invoice is pertaining to upward revision in price and therefore in view of Section 142(2) (a) of CGST Act, it is outward supply under GST law and liable to tax under CGST & MGST Act. 5.6.3 The documents submitted by the applicant as well as the oral submissions made, do not show that the said invoice has been raised in pursuance of increase in contract value. Further, from the submissions made by the applicant we find that in respect of additional claim of Rs. 1,92,50,247/-, the services of site expenses & rectification of water damages was undertaken by the applicant and completed during the service tax regime. These services of site expenses & rectification of water damages are in the nature of additional work entrusted to the applicant, claim against which was disputed by ONGC and on mediation by the O.E.C., the said amount has been said to be payable to the applicant. This amount does not appear to be paid to the applicant in lieu of increase in the value of the original contract. In fact, payment of this amount was....