TaxTMI 
TaxTMI 
2021 (4) TMI 615
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....id work under the Pradhan Mantri Swasthya Suraksha Yojna, Phase-III (PMSSY-III). 3. The applicant submitted that they were granted the Letter of Award on 08.06.2016. The scope of work included construction of multi storied building including water supply, sanitary and plumbing, comprehensive Fire Fighting/ Protection System, Internal & External Electrification, HVAC works, Lifts, WTP, STP, ETP, CCTV and Security System, Solar Panel, PA System, EPABX/ Communication System, LAN System, site development works such as Internal Road + Path & site leveling, sewer and storm water drainage work etc. 4. The applicant submitted that with the advent of GST with effect from 01.07.2017, the services provided by the applicant are classifiable under heading No. 9954 (Construction service) as per the Scheme of classification of service annexed to the Notification No. 11/2017-CT (Rate) dated 28.06.2017. The relevant portion of the Notification is reproduced below : 3 Heading 9954 (Construction services) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire con....
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....service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. 2.5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. (xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) and (xi) above. 9 6. The applicant submitted that the services of work contract provided by a sub-contractor to the main contractor supplying service to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession were taxable at the rate of 12% w.e.from 25.01.2018. 7. The applicant has submitted that in the present case they are sub-contractor providing services to main contractor i.e. M/s. HITES, M/s. HITES is an executing agency o....
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....vices or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 9.3 Further, Sections 95 to 106 of the GGST Act vide Chapter XVII provide for advance ruling and appeals against the same. Similar to CGST Act, the definitions and questions on which advance ruling is sought is provided under Section 95 and 97 of the GGST Act respectively. The relevant paragraphs are extracted below: Section 95. Definitions: In this Chapter, unless the context otherwise requires,- (a) "advance ruling" means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by th....
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.... 10.3 The applicant accordingly, submitted that the Notification No. 01/2018-CT (Rate) dated 25.01.2018 is prospective in nature and for the period prior to this date, the services of the Applicant for construction of Pandit Deendayal Upadhyay Govt. Medical College, Rajkot (Gujarat) were covered under Sl. No. 3(ii) of Not. No. 11/2017-CT (Rate) which provides the rate for composite supply of works contract as defined in clause 119 of Section 2 of the CGST Act, 2017 as 18%. 10.4 The applicant submitted that they are of the view that the services provided by the Applicant were taxable at the rate of 18% for period prior to 25.01.2018 and at 12% for the period post 25.01.2018. Personal Hearing 11. Personal hearing in the matter was held on 23.12.2020 through virtual mode i.e. by video conference. Authorised representative of the company appeared on behalf of the applicant and re-iterated the submission made in the Application. DISCUSSION & FINDINGS 12. We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments/discussions made by their representative. We have also considered the issues involved on which A....
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....cation No. 11/2017-CT (Rate) dated 28.06.2017 vide which Central Government notified rates applicable on the services. Serial No. 3 of the said Notification provided for rate of GST on construction services which is reproduced 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) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 9 - (ii) Composite supply of works contracts as defined in Clause (119) of Section 2 of Central Goods and Services Tax Act, 2017. 9 - (iii) Construction services other than (i) and (....
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....hat where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, Stale Government, Union territory or local authority, as the case may be. (x) 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 in item (vii) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. 2.5 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. 21. The said entries at Serial No. 3(ix) and 3(x) pertained to works contract services provided by the sub-contractor to the main contractors who were in turn providing services to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government En....