TaxTMI 
TaxTMI 
2025 (6) TMI 910
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....plicant, seeking an advance ruling in respect of the following questions. (1) Is interest receivable on deferred payment in Equated Yearly Installment as per tender terms under Annuity Model is liable for payment of GST or Not? (2) If Yes Classification of service and applicable rate of GST payable? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act....
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....ess IV. 4th Payment Milestone On achievement of 75% Physical Progress V. 5th Payment Milestone On achievement of 90% Physical Progress (b) and the balance 40% of BPC will be paid after completion of construction with interest as stipulated in tender (clause 23.6.4) as Annuity in 19 bi-annual installments for 10 years. 1.4 Thus applicant company is entitled to receive balance 40% biannually with interest. 2. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW Considering the section 15 of MGST Act we are of the view that the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply. Accordingly, interest received is taxable at the same rate....
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....s. Jurisdictional Officer Mr. Pankajkumar M. Ratnakar, Assistant commissioner of SGST Appeared. We heard both the sides. 5. OBSERVATIONS AND FINDINGS: 5.1 We have gone through the facts of the case, documents on record, oral and written submissions made by the applicant as well as the written submissions made by the jurisdictional officer. 5.2 SHENWA INFRASTRUCTURE PRIVATE LIMITED (hereinafter referred to as the "Concessionaire") is incorporated to execute concessioner agreement dated 08.08.2018 awarded by Public Works Department, Government of Maharashtra (hereinafter referred to as the " Authority") on Hybrid Annuity Basis. 5.3 As per the concessioner agreement, package number 06 is awarded to the Concessionaire which includes....
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....usted for the Price Index Multiple as applicable on the Reference Index Date preceding the date of that report. For the purpose of this Clause 23.4, the Payment Milestone for release of payment during Construction Period shall be as under: a) I (first) Payment Milestone - On achievement of 20% Physical Progress b) II (second) Payment Milestone - On achievement of 40% % Physical Progress c) III (third) Payment Milestone - On achievement of 60% Physical Progress d) IV (fourth) Payment Milestone - On achievement of 75% Physical Progress e) V (fifth) Payment Milestone - On achievement of 90% Physical Progress Para 23.6 Annuity Payments during Operation Period: 23.6.1 The (t....
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....ys of the 180 (one hundred and eightieth) day of COD and the remaining installments shall be due and payable within 15 (fifteen) days of completion of each of the successive six months ("the Annuity Payment Date"). 23.6.3 Each of the Annuity Payments due and payable during the years following the COD shall be as under: Annuity following the COD Percentage of Completion Cost remaining to be paid on COD 1st Annuity 3.00% 2nd Annuity 3.00% 3rd Annuity 3.00% 4th Annuity 3.00% 5th Annuity 3.00% 6th Annuity 3.00% 7th Annuity 5.00% 8th Annuity 5.00% 9th Annuity 5.00% 10th Annuity 5.00% 11th Annuity 5.00% 12th Annuity 5.00% 13th Annuity 5.00% 14th Annuit....
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.... supply. Considering the section 15 of MGST Act, the value of supply shall include interest or late fee or penalty for delay payment of any consideration for any supply. 5.6 A CBIC has issued a Circular No. 221/15/2024-GST, dated 26-06-202 regarding clarification on time of supply in respect of supply of services of construction of road and maintenance thereof of National Highway Projects of National Highways Authority of India (NHAI) in Hybrid Annuity Mode (HAM) model and clarification given at para 4 is reproduced here as - "It is also clarified that as the installments/annuity payable by NHAI to the concessionaire also includes some interest component, the amount of such interest shall also be includible in the taxable val....