2018 (11) TMI 406 - AAR - GST

Request for withdrawal of their advance ruling application - Rate of GST - composite supply of works contract provided to M/s. APSPDCL - Held that - Since the applicant withdrew the application before personal hearing, the same is dismissed.

Summary

Issues:
1. Entitlement of CGST and SGST for works contract provided to a government entity.
2. Entitlement of works contract agreements for subsidies to be considered non-commercial.
3. Procedure to claim excess tax paid and pass it on to the government entity.
4. Applicable GST rate for subcontractors.

Analysis:

1. Entitlement of CGST and SGST for works contract provided to a government entity:
The applicant sought clarification on whether the composite supply of works contract provided to a government entity, M/s. APSPDCL, is eligible for CGST and SGST at 6%. The query was based on the entity falling under the definition of 'Government Entity' as per Notification No. 31/2017-Central tax (rate), dated 13.10.2017.

2. Entitlement of works contract agreements for subsidies to be considered non-commercial:
The applicant inquired about the entitlement of works contract agreements awarded by APSPDCL, with grants/subsidies from the Government of India/Government of Andhra Pradesh embedded in the expenditure plan, to be classified as 'non-commercial' under a specific notification with retrospective effect from 13.10.2017.

3. Procedure to claim excess tax paid and pass it on to the government entity:
Another issue raised was regarding the procedure under GST law to claim the excess tax paid (difference between 18% and 12%) from the date of Notification till the date of circular, in order to pass it on to APSPDCL as per their circular dated 04.06.2018. The applicant sought clarity on the process to recover and refund the excess tax amount.

4. Applicable GST rate for subcontractors:
The final issue pertained to determining the applicable GST rate for work done by subcontractors if the overall rate is considered to be 12%. The applicant sought guidance on the rate applicable to subcontractors in light of the main works contract being subject to a specific GST rate.

The Authority for Advance Ruling, Andhra Pradesh, was set to provide a ruling on the above issues. However, the applicant withdrew the application before the scheduled personal hearing. Consequently, the Authority dismissed the application as per the applicant's request, leading to the disposal of the case without a formal ruling on the tax-related queries raised.