9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 359 - AAR - GSTScope and applicability of GST - Territorial Jurisdiction - construction of Institute of Security and Law Enforcement Studies at Addu City in Maldives, constructed for Government of Maldives under an Memorandum of Understanding between India and Maldives - recipient of service in the instant case - place of supply in respect of the works contract for setting up of the Institute of Security and Law Enforcement Studies at ADDU City in Maldives. HELD THAT - The Government of Republic of India Government of Maldives entered into a memorandum of understanding for construction of a Police Academy. As per this MOU the Government of India has awarded the work relating to planning, designing and execution of the project to National Buildings Construction Corporation Ltd., New Delhi. Sri Avantika Contractors Ltd., are in turn awarded the sub-contract to construct the said building by National Buildings Construction Corporation Ltd., New Delhi - Evidently Sri Avantika Contractor Ltd., have not entered into any contract with Government of Maldives for carrying out the said construction. Further they do not have any privity with respect to the MOU between the Government of Republic of India Government of Maldives. Therefore the applicant does not have any mutual or successive relationship with the Government of Maldives. Hence Government of Maldives is not the recipient of any service from the applicant. Further an agreement is reached by National Buildings Construction Corporation Ltd.. (NBCCL) New Delhi Sri Avantika Contractor Ltd to construct the building at Addu City in Maldives. Hence Sri Avantika Contractor Ltd., is supplier of the service of the works contract and National Buildings Construction Corporation Ltd.. New Delhi is the recipient of the Service - Both the applicant who is the supplier of service NBCCL who is recipient of service are located in India and therefore the place of supply is to be determined under Section 12 of the IGST Act. The proviso to Sub-Section (3) of Section 12 of IGST Act clearly mention that if the location of immovable property is intended to be located outside India, the place of supply shall be the location of the recipient.
Issues involved:
1. Clarification sought on the applicability of GST on the construction of an institute in Maldives under a memorandum of understanding. 2. Determination of the recipient of service in the case. 3. Identification of the place of supply for the works contract in Maldives. Analysis: Issue 1: Applicability of GST on construction in Maldives The applicant contended that the construction service provided for the Institute of Security and Law Enforcement Studies in Maldives, under an MOU between India and Maldives, does not constitute a taxable supply as it is outside India. However, the ruling authority found that the applicant and the recipient, National Buildings Construction Corporation Ltd., are both located in India. Therefore, as per Section 12 of the IGST Act, the place of supply is determined to be in India, making it subject to GST. Issue 2: Recipient of service The ruling clarified that the recipient of the service in question is the National Buildings Construction Corporation Ltd. (NBCCL) and not the Government of Maldives. The applicant did not have a direct contractual relationship with the Government of Maldives, establishing NBCCL as the recipient of the service. Issue 3: Place of supply for works contract in Maldives Considering that both the supplier (applicant) and the recipient (NBCCL) are located in India, the place of supply for the works contract in Maldives is determined under Section 12 of the IGST Act. The ruling highlighted that if the immovable property is intended to be located outside India, the place of supply shall be the location of the recipient, which in this case is NBCCL. The ruling provided detailed analysis and clarification on each issue raised by the applicant, emphasizing the legal provisions under the GST Act and IGST Act to determine the applicability of GST, the recipient of service, and the place of supply for the works contract in Maldives.
|
