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2021 (1) TMI 694 - AAR - GSTEffective date of Change in rate of tax / GST - composite supply of works contract - clause (119) of Section 2 of Central Goods and Services Act, 2017 - whether it would be in order for the applicant (supplier) to charge GST at the rate of 12% or is the GST rate 18% applicable to the nature of works contract undertaken by the applicant? - HELD THAT - Regarding the rate of GST on the Composite Supply of Works Contract, it may be noted that the rate applicable is dependent' on the nature of the supply. The amendments made by Notification Nos 20/2017 - Central Tax (Rate) and 24/2017-Central Tax (Rate) have notified different rates for different nature of works .In Notification Nos 20/2017 - Central Tax (Rate) Entry No. (iii) of the Notification has specified the recipient of the supply for which the rate is applicable. Entry No. (iv) and (v) are for specific type of supply within the four corners of a Composite Supply of Works Contract - in Entry No. (vi) in Notification Nos 24/2017 - Central Tax (Rate). service as well as the recipient has been specified - the notifications clearly state the rate applicable on satisfaction of twin condition of the nature of the supply and the recipient. The applicant has neither given the particulars of the specific nature of the work done by the applicant nor the particulars of the recipient of the supply. Copies of Work Orders are also not on record. Therefore, in the absence of the relevant and necessary information, we are unable to answer the first query of the applicant relating to the rate of tax applicable to the Composite Supply of Works Contract provided by the applicant. In case of a notification in the body of which the effective date is not written, the effect of the amending notification thus shall be the date on which the amending notification is published in the Official Gazette. Therefore, the effective date for the levy of the amended rate of tax as per amended Notification No. 11/2017 - Central Tax (Rate) shall be the date on which Notification No 20/2017 - Central Tax (Rate) and Notification No. 24/2017 - Central Tax (Rate) were published in the Official Gazette.
Issues involved:
Rate of tax applicable to composite supply of works contract under GST Act and effective date of amendments to Notification No. 11/2017-Central Tax (Rate). Analysis: 1. Rate of tax applicable to composite supply of works contract: The applicant sought clarification on whether to charge GST at 18% or 12% for works contract services. The Authority noted that the rate depends on the nature of the supply and recipient, as specified in Notification Nos 20/2017 and 24/2017. However, due to lack of specific details from the applicant regarding the nature of work and recipient, the Authority was unable to provide a conclusive answer. 2. Effective date of amendments to Notification No. 11/2017: The Authority referred to Section 9(1) and 2(80) of the GST Act, stating that the effective date of a notification is the date of its publication in the Official Gazette. Citing the Supreme Court's decision in Union of India v. M/s Ganesh Das Bhojraj, it was reiterated that the notification takes effect upon publication in the official gazette. Therefore, the effective date for the amended rate of tax as per Notification Nos 20/2017 and 24/2017 would be the date of their publication in the Official Gazette. Ruling: 1. The Authority was unable to provide a ruling on the rate of tax for the composite supply of works contract due to insufficient information from the applicant. 2. The effective date of the amendments to Notification No. 11/2017 would be the date of publication of Notification Nos 20/2017 and 24/2017 in the Official Gazette. 3. The ruling remains valid unless declared void under the relevant provisions of the GST Act.
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