TaxTMI 
TaxTMI 
2021 (8) TMI 673
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.... i. Whether the applicant is liable to collect and pay goods and services tax on amount received from the PWD Department as per revised estimate in respect of work namely "Construction of bridge across Kumaradhara river on Kudmar Shanthimogru Sharavoor Alankar Road at KM 1.20 in Shanthimogaru of Puttur taluk? ii. Whether the applicant is liable to collect and pay goods and services tax on amount received from the Executive Engineer, Public Works, Inland Water Transport Department, Mangalore Division or iii. whether the PWD Department is liable to pay Goods and Service Tax under the GST Act or VAT Tax under Karnataka Value Added Tax Act? 3. Admissibility of the application: The question is about "Determination of Time and Value of Supply of Goods or Services or Both" and hence is admissible under Section 97(2)(c) of the CGST Act 2017. BRIEF FACTS OF THE CASE 4. The applicant furnishes some facts relevant to the issue: 4.1 The applicant is a PWD Contractor, Class-I and registered under the provisions of the GST Act. During the year 2015-16, the applicant's tender bid was accepted for construction of bridge across Kumaradhara river on Kudmar Shanthi....
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....ter the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit note containing such particulars as may be prescribed within thirty days of such price revision and for the purposes of GST Act such supplementary invoice or debit note shall deemed to have been issued in respect of an outward supply made under the GST. 6. The applicant also states that he has obtained an opinion from the Chartered Accountant regarding the applicability of GST. Subsequently, he states that he had requested the PWD Authorities, vide his letter dated 11.11.2020, to pay the GST amount of 12% on the bills submitted by him by enclosing the opinion of the Chartered Accountant. In response to the applicant's said letter, the PWD Department addressed a letter dated: 01.12.2020 to the Local Goods and Service Tax Office-270, Mangalore, requesting for clarification of payment of tax under the GST Act. Subsequently, the applicant had written another letter dated 22.02.2021 to the PWD department narrating the liability. 7. In view of the facts and grounds narrated above, the applicant is desirous of obtai....
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.... vi. After the completion of construction of bridge and approach road, the same was handed over to PWD on 01.06.2017 which was accepted on 11.7.17. After handing over the bridge, revised estimate was approved by the PWD Department by its letter dated 15.06.2020 and on 07.06.2020, consequently the applicant has also executed supplementary agreements on 15.06.2020. vii. Subsequently, the department has paid part of the contract amounts of Rs. 5,56,285/-and Rs. 1.48,26,658/-. It is submitted that while remitting the contract amount of Rs. 1,48,26,658/-, the PWD Department has deducted TDS at the rate of 1 % under CGST Act and 1 % under SGST Act. Applicant held a view that the department is liable to pay tax at the rate of 12% (6% under the CGST Act and 6% under the SGST Act), and hence the applicant has rejected the said TDS amount. viii. From the details provided and the note of the C.A., it appears that the liability to GST is on the taxpayer himself and not on the PWD Department. The applicant GST can be recovered from the PWD department by the taxpayer. The deduction of 2% GST as TDS appears to be in order. The same can be utilised by the taxpayer to discha....
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....hich advance ruling is sought by the applicant, relevant facts and the applicant's interpretation of law. 12. As could be seen from the documents submitted by the applicant, especially FORM P.W.G.33 (Revised) - Running Account Bill dated 23.06.2020- the applicant has executed the construction of a bridge and approach road under the name "Construction of bridge across Kumaradhara river on Kudmar Shanthimogaru- Sharavoor-Alankar Road at CH 1.20 KM in Shanthimogaru of Puttur Taluk, Dakshina Kannada District KPWD/2011-12/BG/WORK_INDENT 10945" with an estimated amount of Rs. 940.00 lakhs and the reference agreement is DAR No.589/2014-15 dated 30.03.2015 and date of written order to commence work was 30.03.2015 and date of actual completion of work is 11.07.2017. Further, it could be seen that the value was revised to Rs. 15,05,00,346-00 and the payments were made worth Rs. 1,48,26,658-00 by the PWD Division, Mangalore (The Executive Engineer, Public Works, Inland Water Transport Department, Mangalore Division, Mangalore). 13. The applicant has produced the copies of the supplemental agreements entered as under:- (a) the EIRL of the above work with the terms and condit....
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.... or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this Act;" 17.1 From the above, it is clear that he has issued invoices for the above transactions after the appointed date and the above invoices should be deemed to have been issued in respect of an "outward supply made under the GST Act". Hence the turnovers on which the question is raised by the applicant are deemed to be the turnovers under the GST Act and not under the VAT Act. 17.2 From the above discussion, it can be said that the above turnovers are liable to tax at the appropriate rates under the GST Act. There is no question of the same being taxed under the earlier KVAT Act. Hence, the applicant is liable to charge GST on the said amount and is entitled to collect the same from the recipient of the service. The TDS amount deducted by the Department could be utilised by the applicant while making the payment of the liability but that does not preclude him from paying the tax. 18. Regarding the time of supp....