TaxTMI 
TaxTMI 
2024 (8) TMI 231
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and the Notifications issued thereunder. 3. The applicant requested advance ruling on the following. 3.1. The classification and SAC code for the Application of Polymer protective coating for bridges. 3.2. The rate of tax as applicable under Notification 11/2017-Central Tax (Rate) as amended from time to time for the period 01-07-2017 till date. 3.3. Whether the services provided by them are eligible for any exemption from the whole or part of the tax leviable thereon under Notification 12/2017-Central Tax (Rate). 4. Contentions of the Applicant. 4.1. The Applicant claims to be engaged in providing works contract services including materials by way of application of polymer protection to bridges in the State of Kerala as part of construction of bridges as well as for routine maintenance/renovation of bridges. The applicant is also providing such services in the states of Karnataka and Tamil Nadu and is also registered in the respective states under GST Law. 4.2. The Applicant provides the service as a principal contractor as well as in the capacity of sub-contractor to various entities including Government, Governmental Authorities and Government Entities incl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....017-CT-(R) as amended by Notification 20/2017 CT (R) 12% 01-01-2022 11/2017-CT-(R) as amended by Notification 22/2021 12% 4.7. The applicant also submits that the definition of works contract under Section 2 (119) includes all services relating to the immovable property are included in the definition and it is immaterial if it is provided in the shoes of main contractor/ sub-contractor as far as entries in Notification 11/2017-CT entry 3 (iv) is concerned as well as wishes to submit at the status of the recipient is also not a condition envisaged in the said entry. Thus from the above contentions the appellant submits that the said services thus, fall under SAC 995473. 5. Comments of the Jurisdictional Officer. The application was forwarded to the jurisdictional officer as per provisions of section 98 (1) of the CGST Act. The Jurisdictional officer has not submitted any remarks and hence it is presumed that the jurisdictional officer has no specific comments to offer. It is also construed that no proceedings are pending on the issue against the applicant. 6. Personal hearing. The applicant was granted an opportunity for personal hearing on 20/12/2023. Shr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t, 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. From the definition it reveals that the term works contract under GST is restricted to any works undertaken for an 'immovable property' wherein transfer of property in goods whether as goods or in some other form is involved. 7.7. For a contract to qualify as a works contract, it must be a composite supply, involving both goods and services, resulting in the construction, repair, maintenance, renovation, or improvement of an immovable property. As per para 6 (a) of Schedule II of the CGST Act, 2017 works contract is treated as supply of services, regardless of whether the principal supply is goods or services. 7.8. A polymer coating is a thin layered coating or paint made with polymers that provide superior adherence and protection from corrosion. Therefore the activity of polymer coating comes under the activity of improvement of immovable property wherein transfer of goods in the form of paint included and hence squarely falls ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Heading 9954 (Construction services) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 9 - (ii) Composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017. 9 - (iii) Construction services other than (i) and (ii) above. 9 - 7.13. However, w.e.f 22.08.2017, an amendment was made in the parent notification 11/2017-Central Tax (Rate) vide notification no. 20/2017-Central Tax (Rate) dated 22.08.2017. SI. No. 3(iii) of the parent notification 11/2017-Central Tax (Rate) has been substituted with the following entries appended below; (3) (4) (5) "(iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a lo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rship' framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under- (1) the "Affordable Housing in Partnership" component of the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. 6 - (vi) Construction services other than (i), (ii), (iii), (iv) and (v) above. 9 -"; 7.14. Analysis of the aforementioned amendment reveals that, w.e.f. 22.08.2017, vide sl. no. 3 (iv)(a), the composite supply of works contract supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a bridge for road transportation for use by general public would be taxable @ 12% (CGST @ 6% and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....subject to conditions specified against them in column (5) and shall not be levied at the rate as specified under this entry. 9 7.16. By way of the aforementioned amendment the specific entry related to works contract by way of construction of bridge for the road transportation for use by general public has been removed w.e.f. 18.07.2022. Hence, w.e.f 18.07.2022, the activity of the applicant discussed in this ruling will be taxable @ 18% (CGST @ 9% and SGST @ 9%) vide entry 3(xii) of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time. 7.17. As per sub-section (1) of section 13 of the CGST Act, the liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of the said section. However, where there is a change in the rate of tax in respect of goods or services or both, the time of supply shall be determined in accordance with the provisions of Section 14 of the CGST Act. 7.18. Section 14 of the CGST Act, 2017 reads as follows; "Notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in r....