TaxTMI 
TaxTMI 
TaxTMI 
2021 (12) TMI 609
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....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, the expression `GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by M/s. Core Construction, the applicant are as under:- 2.1 Applicant is providing work contract service (WCS) as a sub-contractor to the main contractor for construction of Roads to be used by the general public. As per Notification No 20/2017-CT(Rate) dtd 22/08/2017 the rate of GST is 12% for Construction, erection, commissioning, installation, completion repair, maintenance renovation alteration of Roads to be used by the general Public. Also as per Sr No.12 in press release of 25th meeting of GST council held at New Delhi on 18/01/2018, proposed that the rate of GST applicable to main contractor should be levied by sub-contractor, although Notification No. 01/2018 C.T. (R) dated 25/01/2018 doesn't specify the service provided by a sub-contractor to main contractor for construction of a Roads. 2.2 Applicant feels that they are a sub-contractor providing service to the....
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....rted to extend the benefit to sub-contractors, when the works are "that covered under SI.No. 3 (iii), (vi) and (vii). However, in respect of entry covering the relevant work or project [entry iv] the requirement for the separate entry for Sub-Contractors does not arise. 2.8 As per the Press Release for Decisions relating to Services in the 25th meeting of GST Council held at New Delhi on 18.01.2018 it is specified in serial number (12) to reduce GST rate (from 18% to 12%) 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%. 2.9 As stated earlier, the entry at 3(iv) do not specify the class of service provider to whom it applies. The entry is specific to the composite supply of works contract pertaining to roads. This view is fortified by the justification of the recommendation of the Fitment Committee to the 25th GST Council meeting after which the downward revision of the rate was effected. 2.10 The service provided by sub- contractor to main contractor for construction of roads or....
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....fore Hon' Advance Ruling Authority, it is submitted that majority of the subcontractor work is completed and applicant has already raised tax invoices for completed work. Further applicant has already filed annual returns in GSTR-9C for year 2018-19 and 2019-20. Hence, in reference to provisions of invoices as mentioned in Section 31 of CGST Act and time line of allowable modifications in Time and Place of supply, any retrospective amendments in invoices will be difficult. The subject application may either be rejected or the ruling should be announced only for future invoices in current sub-contracted work. 3.3 Notification 1/2018-Central Tax (Rate) dated 25 January 2018, has clear mention that "(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 in item (iii) or item (vi) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity." Attracts levy of CGST at 6%. 3.4 Whereas, activity undertaken by applicant, construction of roads is related to item ....
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....s the provisions of Section 95 of the CGST Act. Hence, the subject application cannot be rejected outright on the ground contended by the jurisdictional officer. Hence, the application of the applicant is being considered. 5.3 The applicant has submitted that, their supply falls under Entry No. (iv) of Notification No. 20/2017-Central Tax (Rate) dated 22nd August 2017 as per which, CGST and SGST @ 6% each, has been specified for supply 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... The said Entry No. (iv) is reproduced as under:- 3 4 5 (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 5.4 We find that, the aforesaid entry at serial no.3(iv) does not specify t....
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....at 3(xii) which reads as" (xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x) and (xi) above. 5.6 Further Entry No. 3(iv) being relied upon by the applicant, itself is very clear and unambiguous, that it covers the impugned contract of construction of roads and further it does not restrict that such road construction will be liable to tax of concessional rate of 12% only if that the said road construction is carried out by the main contractor. There is no such restriction regarding who should carry out the said construction of roads (in Entry No.iv). Therefore, even if the construction of road is carried out by a sub-contractor, still it shall attract the rate of 12%. 5.7 Further, The GST Council in their 25th meeting on 18.01.2018 had made recommendations at item No. 12 as under: "to reduce GST rate (from 18% to 12%) 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, H/CS attracting 5% GST, their sub-contractor would also ....