TaxTMI 
TaxTMI 
2023 (12) TMI 1273
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....h the Govt. Departments against the Contracts awarded by them. The company Aligarh Smart City Limited (ASCL) is a Public company and was incorporated on 30 August 2017. It is classified as State Govt company and is registered at Registrar of Companies, Kanpur. The Company has awarded the contract of "Redevelopment of Carriageway, foothpath, vending zone covering ROW within ABD area of Aligarh Smart City(CW-23) on EPC mode (Pakage-1) at Aligarh" by the Aligarh Smart City Limited (ASCL), Manasi Ganga Building, Baraula Bye Pass, Near Shanti Lodge, Aligarh, Uttar Predesh PIN 202001. Which was executed on 27th day December, 2021. Contract Agreement has been provided by the applicant. 3. The applicant has sought advance ruling in respect of the following questions:- 1) Whether the company will charge the GST @ 12% or @18% in the case of the contracts executed before the said notification? (No. 03/2022-Central Tax (Rate) dated. 13.03.2022 w.e.f 18.07.2022. 4. The question is about applicable GST rate under the provisions of CGST Act and liability to pay GST, hence is admissible under Section 97(2) (a) of the CGST Act 2017. Further, as per declaration given by the applicant ....
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....all taxes. When the bid/tender was applied the Rate of the GST was @12% while subsequently vide No. 03/2022-Central Tax(Rate) dated 13.07.2022 w.e.f. 18.07.2022 the tax rate was changed to 18%. Section 2(119) "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract, Government Contracts means "A contract to which the Central Govt or a State Govt, is party can be called Government Contractor and the party who is required to execute the contract for or on behalf of the Government is referred to as a Govt. Contract. 6.3 That this contract was awarded in the year of 2020-2021. The rates were provided included the GST. When the bid/tender was applied the Rate of the GST was @12% while after the notification No. 03/2022-Central Tax (Rate) dated 13.07.2022 w.e.f. 18.07.2022 the change was made in the rate of tax which as follows- List of Work Contact Old Rate GST New ....
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....he firm. They reiterated the facts of the case and submitted that consequent to the change in rate of tax, the tax rate can be determined according to provisions contained in Section 14 of CGST/SGST Act 2017 accordingly they have submitted that the tax rate for invoices issued by the applicant will be as follows : Scenario Invoice Date Date of payment Rate of Tax Work in continue 12.03.2022 24.03.2022 12% Work in continue 30.03.2022 16.11.2022 12% Work in continue 16.11.2022 16.11.2022 18% Work in continue 29.11.2022 29.11.2022 18% Work in continue 15.01.2023 19.01.2023 18% Work in continue 15.01,2023 19.01.2023 18% Work in continue 15.01.2023 19.01.2023 18% Work in continue 01.03.2023 03.03.2023 18% Work in continue 01.03.2023 03.03.2023 18% Work in continue 28.03.2023 31.03.2023 18% Work in continue 28.03.2023 31.03.2023 18% Work in continue 29.03.2023 08.05.2023 18% Work in continue 04.05.2023 08.05.2023 18% Work in continue 04.05.2023 08.05.2023 18% 8. The applicant was granted opportunity for p....
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....historical monuments, canal, Dams, Pipelines, Plant for water supply etc. was enhanced from 12% to 18% vide notification No.03/2022-Central Tax(Rate) dated 13.07.2022 w.e.f. 18.07.2022. Applicant has sought ruling with respect to the applicable rate of GST on work contract. 12. We have gone through the submissions made by the applicant and have examined the same. The applicant in the present application has sought advance ruling on following question/clarification- 1) Whether the company will charge the GST @ 12% or @18% in the case of the contracts executed before the said notification? (No. 03/2022-Central Tax (Rate) dated. 13.03.2022 w.e.f 18.07.2022.) 13. The Applicant has been awarded the contract of "Redevelopment of Carriageway, foothpath, vending zone covering ROW within ABD area of Aligarh Smart City(CW-23) on EPC mode (Pakage-1) at Aligarh" by the Aligarh Smart City Limited (ASCL) vide contract agreement dated 23.12. 2021. Work contract as per Section 2(119) of CGST Act 2017 is defined as under: "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification....
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....t the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice: Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax. Explanation.- For the purposes of this section,- the date of receipt of payment shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier." 13.1 In view of the above provisions, the rate of GST tax applicable in the matter is as under: Invoice No. Invoice Date Date of payment Rate of Tax PPS/0022/21-22 12.03.2022 24.03.2022 12% PPS/0028/21-22 30.03.2022 16.11.2022 12% PPS/0007/22-23 16.11.2022 16.11.2022 18% PPS/0009/22-23 29.11.2022 29.11.2022 18% PPS/0011/22-23 15.01.2023 19.01.2023 18% PPS/0012/22-23 15.01.2023 19.01.2023 18% PPS/0013/22-23 15.01.2023 19.01.2023 18% PPS/0019/22-23 01-03.2023 03.03.2023 18% PPS/0020/22-23 ....