TaxTMI 
TaxTMI 
2022 (3) TMI 1203
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....i Nagar, JAWUR-302034, RAJASTHAN, - (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) & (e) given as under: (a) Classification of any goods or services or both; (e) Determination of the liability to pay tax on any goods or services or both. A. SUBMISSION AND INTERPRETATION OF THE APPLICANT: * That the Applicant wants to apply in the capacity of a Sub-Contractor to the Principal Contractor who has been allotted tender by the Office of the Additional Chief Engineer, Public Health and Engineering Department, Region- Kota, Government of Rajasthan ('Originating Employer') for 'Operation and Maintenance of Integrated Ramganjmandi Pachpahar Water Supply Project- Transmission System for Three Years'. * It is stated herein that the services provided by the Principle Contractor to the Originating Employer involves Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the State Government. Therefore, the Principal Contractor attracts 'nil' rate of tax under Goods and Services Tax ('GST') ....
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....ontractor for the Government or Government Entities and majority of the work includes supply of services. On this basis, as the work done by the Applicant-Sub Contractor for the Principal Contractor also involves supply of services majorly and such work also gets transferred to the Government through the Principal Contractor, such composite works contract being performed by the Sub-Contractor for the Principal Contractor should also attract same rate of duty as applicable on the Principal Contractor. 6. Therefore, the taxability of the Sub-Contractor should be the same as of the Principal Contractor. Otherwise, the intention of the Government for providing relaxation in rate of duty to the Principal Contractor will get frustrated. B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:- Whether if a Contractor who is covered under Clause 3A of the Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 and whose composite supply of goods and services attracts 'NIL' rate of duty, assigns/sub-lets the said contracted work to a sub-contractor in accordance with the terms and conditions of the contract, whether the same rate of duty i.e. NIL shall also be applicable to the ....
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....or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 4.2 Section 8 of CGST Act, 2017 reads as under:- 8. Tax liability on composite and mixed supplies. - The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: - (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; 4.3 Composite supply has been defined under Schedule-II under Entry 6 which is read under: "6. Composite supply The following composite supplies shall be treated as a supply of services, namely: (a) works contract as defined in clause (119) of section 2; and (b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration." 4.4 As per Secti....
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....d representative of the applicant has submitted a copy of 'Notice Inviting Tender' (NIT NO. 30/2021-22) (Page I to VI only) in respect of 'Operation and Maintenance of Integrated Ramganjmandi Pachpahar Water Supply Project- (Transmission Part) for 3 Years, PHED, Kota. 9. On examination of the 'Notice Inviting Tender' (NIT NO. 30/2021-22) provided by the applicant, we find that it was simply a tender document having general details of work description, estimated cost, earnest money, cost of tender document, tender processing fee, period for O&M, important dates of events and eligibility /technical criteria. There is nowhere mention about scope of work to be done by the applicant. 10. In the absence of clear scope of work to be performed by the applicant in the said project (i.e. 'Operation and Maintenance of Integrated Ramganjmandi Pachpahar Water Supply Project- Transmission Part), we are not in the position to ascertain whether the work to be awarded to the applicant by the principal contractor will be either wholly or partially or of goods & service both or only goods or only service. 11. Thus, in the absence of aforesaid information/ documents, we are ....