TaxTMI 
TaxTMI 
2022 (4) TMI 1133
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....h GSTIN 33ABIAS3460L1Z8. The applicant has sought Advance Ruling on the following questions:- 1. Whether the execution of works contract service at Kudankulam Nuclear Power Project would be covered under S.No vi (or) vii of Notification No.24/2017 dated 21.09.2017 attracting GST@12% or 18% 2. The assessee had already charged GST @12% on its invoices for the works contract service provided. In case the rate of GST is determined to be 18% instead of 12% should we pay the differential tax through debit note under GSTR 1? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they are engaged in execution of civil engineering and other general construction contracts for various Government departments and organizations. The parties SOM Projects private limited and M/s Varin dera Constructions Limited have entered in to joint venture under the name "SOM VCL(JV)" solely for carrying out the works contract service for Kudankulam Nuclear Power project,....
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....00% shareholding is held by Parliament of India has awarded the works contract service to the applicant for construction of residential complex only and there is no commercial activity involved which has been confirmed by NPCIL vide their letter dated 22.01.2021. They have also stated that as per column v to item vii of the Notification 31/2017 CT (Rate) when the services are supplied to a Government Entity , they should have been procured by the said entity in relation to work entrusted to it by the Central Government, State Government, Union territory or local authority. The applicant has stated that in their case the project has been awarded by the Government entity "NPCIL" and there is no intermediary involved in the whole scheme of transactions. The works contract service as per the work order has been procured wholly for the construction of residential quarters of Anuvijay township in Kudankulam Tirunelveli. In the light of above facts, the applicant is of the view that their services of construction of residential quarters to NPCIL will attract GST at 12%. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the applicant was addressed t....
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....ow facts:- i. As part of the annual report of NPCIL it has been stated in its significant accounting policies that the 100% shareholding of the company is held by the "President of India" on behalf of the Government of India'. ii. In the table relating to "shareholding pattern of top 10 shareholders" the tabulation clearly states and indicates the Hon'ble President of India to hold 100% of the shareholding of the company with 12,69,36,627 shares being held as at year ending 31.03.2020. iii. In the annual return form, Form No. MGT-7 filed by NPCIL, copy of which is available in its website has stated and declared itself to be a "Union Government Company" • In terms of Notification 24/2017 amended by Notification 46/2017 CT (rate), Clause c covers "construction of residential quarters for usage by the employees" As they have received the work order directly from NPCIL, the same is applicable to their service. Hence, they are eligible to adopt the tax rate as stated in Sl.No.(vi) of the said notification attracting GST at 12%. • In respect of the clarification pertaining to Q.No.2, they have stated that Section 97(2) of the ....
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....culars were required to be furnished by the jurisdictional authority vide letter of this office dt. 15.12.2021.- (i) A letter/statement from M/s. KKNPP regarding the financial approval for the planned township and details of such approval by the Central Government for establishing the township namely Anuvijay Township in reference to the letter No. NPCIL/KKNPP/C&EMG/2021/S/148 dt. 22.01.2021 of M/s. NPCIL. (ii) Copy of the plan of township with reference to the project- KKNPP and the residential quarters being constructed by the applicant. 4.3 In response reply from the Office of the Joint Commissioner of GST, Tirunelveli vide letter dt.28.02.2022 was received wherein the following particulars were furnished:- • The tax payer i.e., M/s. SOM(VCL) JV stated that the requisite documents were not available with them and has to be obtained from NPCIL. • The jurisdictional Range Office had addressed letter to the Chief Engineer, NPCIL, Koodankulam on 23.12.21. As no response was received, the Additional Chief Engineer was addressed vide letter dt.29.12.21 by the RO. Further both these officers were contacted over telephone too. â€....
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.... 6.2 The second question seeking ruling is that the applicant had already charged GST @12% on its invoices for the works contract service provided, and in case the rate of GST is determined to be 18% instead of 12%, should the differential tax be paid through debit note under GSTR 1. As the question was found to be seeking clarification on procedural aspect of the law, the applicant was addressed vide a notice dt. 01.11.2021 seeking their justification for admission of the said question for Advance ruling as questions on procedural nature does not fall into the ambit of Section97(2) of the CGST Act,2017. In response to the notice, applicant has vide their letter dt.08.11.21 submitted that the question is on the mechanism of tax payment, if the tax is determined at a rate higher than that at which tax has already been paid and that in their opinion, the question sought relating to mechanism of tax payment is ancillary and directly related to the determination of tax liability. It is observed that the question for ruling is on how to pay the differential duty if the tax to be paid is determined at 18% as they have already charged 12% GST, i.e., the question is on the modality of p....
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....civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017. 6 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 It is observed from the above entry that the following conditions are required to be satisfied for availing concessional rate of 6% in terms of SI.No. 3(vi) of said Notification:- a) Supply must be,- i. works contract as defined in clause 119 of Section 2 CGST Act, 2017 rendered by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a ci....
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....l, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. It is seen from the submissions that Nuclear Power Corporation India Limited (NPCIL), is a Public Sector Enterprise under the Department of Atomic Energy (DAE), Government of India, incorporated on September 17, 1987 as a Public Limited Company under the Companies Act 1956 with the objective of operating the atomic power stations and implementing the atomic power projects for the generation of electricity, in pursuance of the schemes and programs of Government of India under the Atomic Energy Act and the entire shares are held by the Central Government. Thus, NPCIL is a PSE established under Department of Atomic Energy, (Central Government Department) with 100 percent equity held by the Central Government to implement atomic projects for the generation of Electricity as entrusted by the Central Government and therefore is a 'Government Entity' 7.5 Now that it is established that the service recipient is a Government entity, the condition in clause 'c' of SI. No. vi, which stipulates that the supplies should be procured by the said Government ....
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....ded to the row of mails/letters. NPCIL, being a government entity is eligible for the concessional rate as per the Notification subject to the condition at col.(5) of the Table above i.e., the supplies should be procured by the said Government 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. The applicant has not furnished any details satisfying the said condition. The advance ruling authority is not an adjudicating authority. The rulings given by the advance ruling authority has a binding influence on tax authorities and has revenue consequences. The authority cannot therefore proceed, on assumptions and presumptions. This authority under the powers vested with it undertook to ascertain whether the said condition stands .satisfied, but the jurisdictional authority has expressed non-cooperation on the part of the applicant and M/s.KKNPP. Hence in the absence of substantiation with regard to the fulfillment of the condition that the services are procured by M/s.KKNPP in relation to the work entrusted to them by the Central government, the concessional rate provided is not available to th....