TaxTMI 
TaxTMI 
2024 (8) TMI 61
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....on 97 of CGST Act, 2017 and Section 97 of the OGST Act, 2017 in FORM GST ARA-01 discharging fee of Rs. 5,000/- each under the CGST Act and the SGST Act. 1.0 The Applicant has sought ruling in respect of the following question: Whether the applicable rate of GST under the CGST & SGST Act, 2017 will be 6%+6% respectively (total 12%) under Notification No. 24/2017-Central Tax (Rate) dated 21.09.2017 (as amended from time to time) or 9% + 9% respectively (total 18%) in view of the amendment to the said Notification No. 3/2022-CT (Rate) dated 13.07.2022 read with Section 14 of CGST & SGST Acts, 2017 for price adjustment invoices (for escalation of price) to be raised (and payments there-against to be received in future) for services ....
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....r of the present application. The Applicant has classified the said service under Chapter Heading/HSN/SAC Code 995462. In respect of these services supplied prior to 18/07/2022, the applicant has to issue invoices on the contractee RWSS for recovery of price variation in terms of clause 19.10 of the contract as aforesaid. The applicant has not yet issued the said invoices of price variation & also, therefore, has not received payment there-against from RWSS. 2.4 By Notification No 24/2017-Central Tax (Rate) dtd. 21.09.2017 (as amended from time to time), the rate of CGST on aforesaid services was fixed @ 6%. By Notification No. 03/2022-CT (Rate) dated 13.07.2022 w.e.f. 18.07.2022, an amendment was made in the entry no. 3 by which the rat....
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....retation of law and/or facts, as the case may be, in respect of the question asked. We observe that the issue before us is squarely covered under Section 97 (2) of the CGST Act, 2017 and therefore we admit the application for consideration. 4.1 On examination of the application and documents submitted by the applicant, it is seen that Voltas Ltd. was awarded a works contract dated 19/03/2020 on EPC basis by RWSS (Rural Water Supply & Sanitation Department), Govt, of Odisha for Rural Piped Water Supply Project in Sudergarh District of Odisha. Subsequently, the said contract has been executed by the applicant who is a subsidiary of voltas Ltd. On execution of the contract, it has issued invoices to the contractee charging GST @12% in view ....
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....d prior to 18.07.2022. To determine the rate of tax, we need to discuss provisions of Section 14 of the CGST Act, 2017 which deals with the time of supply, where there is a change in the rate of tax in respect of goods or services or both. Section 14 of the CGST Act, 2017 is reproduced below: "Notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely:- (a) in case the goods or services or both have been supplied before the change in rate of tax,- (i) where the invoice for the same has been issued and the payment is also received after the change in rate o....
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....n: 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". 4.4 From the above, it is noticed that the rate of tax depends on occurrence of 3 events namely- (a) Supply of Goods and/or Services have been provided, (b) Issuance of Invoice & (c) Date of receipt of payment. The provisions of section 14 can be compiled in the following tables: In case the goods or services or both have been supplied before the change in rate of tax. Table 1 S.No. Date of receipt of payment Invoice Issued Time of supply R....