TaxTMI 
TaxTMI 
2024 (4) TMI 99
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....at the contractee BWSSB has been classified as Local Authority in their GST registration No. 29BLRA06245BlDJ, issued by GST Department and thus entry No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts the supply of pure services to a local authority. 4. The AAR, Karnataka, after following the due principles of natural justice, rejected their application, vide ruling No. KAR ADRG 44/2022 dated 29.11.2022, in terms of Section 98(2) of the CGST Act 2017, basis the said application was not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant, but in relation to a completed supply, provided by them and therefore the said application was beyond the jurisdiction of this Authority 8s liable for rejection, as specified under Section 95(a) of the CGST Act 2017. 5. The applicant, aggrieved by the said ruling filed the Writ Petition No. 1119/2023 before the Hon'ble High Court of Karnataka, Bengaluru, on the grounds that the opportunity to submit their arguments with regard to admissibility of the application was not given. The Writ Petition has been ordered on 12.04.2023 as under:- "The petition....
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....ly on their submissions vide their letter dated 07.08.2023. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant & the submissions made by their learned representative during the time of hearing. 10. The applicant sought advance ruling in respect of the question mentioned at para 2 supra. The applicant was awarded a contract by BWSSB for execution of civil and electromechanical works for pumping stations & reservoirs at T. K. Halli, Harohalli and Tataguni as well as Operation & Maintenance for a period of 7 years. It is an admitted fact ....
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....ply is misleading and not acceptable. Further Section 97(2)(g) deals with any particular thing done by the applicant, with respect to any goods or services or both, amounts to or results in a supply of goods or services or both, within the meaning of the term "supply". Thus this section specifies whether any particular thing done by the applicant amounts to supply or not and therefore the applicant argument is not acceptable and not tenable under the law. It is pertinent to mention here that "advance ruling" is defined in terms of Section 95(a) of the CGST Act 2017 to mean "a decision provided by the Advance Ruling Authority to an applicant on matters or on questions specified in Section 97(2) of the CGST Act 2017 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant". Thus an advance ruling is,- - A decision provided by the Authority - To an applicant - On matters or on questions specified in Section 97(2) - In relation to supply of goods or services or both - Being undertaken or proposed to be undertaken by the applicant. It could be inferred from the above definition that it contains five limbs and the l....
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....oice is not issued within the period prescribed under section 31 or the date of receipt of payment, whichever is earlier; or (c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply: Provided that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount. Explanation.- For the purposes of clauses (a) and (b),- (i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment; (ii) the date of receipt of payments 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. In the instant case it is an admitted fact that the contractee has not paid the consideration in full towards the supply of impugned works contract, which implies that the applicant has r....
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....17-Central Tax (Rate) dated 28.06.2017, amended by Notification No. 2/2018 dated 25.01.2018 and further Notification No. 16/2021 dated 18.11.2021". Thus the applicant through the amended application seeks to know through the question that whether the exemption under Notification No. 12/2017 is available for future works to be undertaken on similar lines to that of the earlier contract undertaken with BWSSB, Bengaluru, Karnataka. 11.10 The following observations have been made from the applicant's earlier contract dated 07.04.2010 with BSWWB.- a) The nature of the works to be designed and executed by the contractor is "Civil and Electromechanical works for Pumping Stations and Reservoirs at T.K. Halli, Horahalli and Tataguni and Operation and Maintenance of the Facilities for a period of Seven Years." b) The bid accepted by the contractor (applicant) is for the design, execution and completion of such works and remedying of any defects therein and operate and maintain the constructed facility. c) The time for completion will be 21 months. It is evident from the observations supra that the contract covers civil works wherein the supply of goods is also involved and thus s....