AI Drafter 
TaxTMI 
TaxTMI 
2021 (9) TMI 1038
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....3 km. near Jalansar and supplying and laying MS pipeline of 2650 mm. Diameter to 600 mm dia from Ch.146.383(UND-III) to 216.053 km with branches for moh and sorathi with all allied work (total pipeline length 104.165 km.) etc. and maintenance of the commissioned project for 10 years. Copy of the contract is submitted. The applicant further submits that JSIW Infrastructure has executed the same contract with Radhe Construction (copy submitted) and M/s. Radhe Construction has further executed the agreement with the present applicant qua to the original work. Copy of the contract executed by Radhe Construction with the applicant is submitted. 3. The applicant submits that as per Notification No.20/2017-Central Tax(Rate) dated 22-8-2017, the rate of GST is 12% for the composite supply of works contract supplied by way of construction, erection, commission or installation of original works pertaining to the irrigation and construction works supply to the irrigation department, State of Gujarat; that as per Sr.No.12 in press release of 25th meeting of GST council held at New Delhi on 18-1-2018, the rate of GST applicable to the main contractor should be levied by sub-contractors; that....
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....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. 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. 12 5. The applicant submits that even though they being sub-contractors are providing service to the main contractor affecting the original works contract for civil construction irrigation and construction works supply to the irrigation department, State of Gujarat, which may not be covered in the above entry, they believe that the rate applicable to them is 12% only which is the rate applicable for the composite supply of works contract as defined in clause(119) of Section 2 of the CGST Act, 2017, supplied by way of construction, erection, commissioning, or installation ....
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.... goods passes directly from the sub-contractors to the employer which leads them to the conclusion that there is only one contract that is between the irrigation department(State Government) and contractor as well as sub-contractor and they are doing the job for irrigation department(State of Gujarat). 7. The applicant further submits that they would also like to highlight the intent of the Government to bring the rates of main contractor and sub-contractor at par while they are providing their services to Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity; that irrigation department being a Governmental Authority/Entity is already covered under clause(x) of heading 9954 of section 5 of classification of services even though not specified separately; that the rate applicable for civil works contract carried out for railways in para(v) of heading 9954 of section 5 of classification of services should be applicable to sub-contractors also. The applicant has concluded their submission by stating that their application for advance ruling is to have certainty in the tax liability in relation to an activity provide....
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.... be satisfied: i. Composite Supply of Works Contract to be supplied by Main Contractor to Government and ii. Supply by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of canal, dam or other irrigation works. We observe that the applicant does not satisfy condition 1, but satisfies only condition no. 2. 15. Further, We hold that to be eligible for being covered at Sr no 3 (ix) of said NT 11/2017CT(R), the following two conditions shall be satisfied: i. Composite supply of works contract provided by a sub-contractor to the main contractor and ii. That main contractor shall provide services specified in item (iii) to Government. 15.1 We find that the applicant is not a sub contractor but a sub sub contractor. The person to whom the service is supplied is specific in the Notification. Either, the service shall be supplied by main contractor to Government or the service shall be supplied by a sub contractor to the main contractor providing services to Government. We observe that the applicant does not satisfy both the conditions. The gist of the findings is ta....
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....he Punjab Authority for Advance Ruling in the case of S.P.Singla Construction Pvt. Ltd: This Ruling pertains to classification of works contract service in relation to bridges and the tax payer is a sub contractor. The present issue at hand is applicant is a sub sub contractor. ii. Order No. MAT/AAAR/SS-RJ/15/2018-19 dated 3-1-2019 of the Maharashtra Appellate Authority for Advance Ruling in the case of M/s. Shree Construction: This Ruling pertains to a subcontractor for Railway work and therefore not applicable to our subject matter at hand as cited Ruling pertains to the classification and GST liability in respect of supply of work contract pertaining to Railways provided by the sub-contractor. The said supply has been classified under Sr.No.3(v) of Notification No.11/2017-Central Tax(Rate) dated 28-6-2017 on the ground that even if the sub-contractor has provided the service to the main contractor, it still 'pertains to' railways only as it is clear from a plain reading of the item(v) of Sr.3 of the Notification that any supply of works contract pertaining to the railways including monorail and metro is subject to concessional rate of 12% GST. iii. Mary Matha C....