2023 (8) TMI 1207 - AAR - GST

Exemption from GST - sub-contract work of Land Reclamation/Solid Waste Management to Municipal Corporation of Grater Mumbai through their main contractor M/s Biomining India Private Ltd. - exemption is applicable to all sub-contracts which the Applicant will undergo both GSST/CGST and MST in future or not - serial number 3 of Notification No. 12/2017 dt. 28.06.2017. HELD THAT - It is observed that the place of supply is not in the state of Tamil Nadu but in another state. Further, the contract is between M/s Biomining India Private Ltd., who is registered in the state of Maharashtra and Municipal Corporation of Grater Mumbai and the Tax treatment given to the main contractor is not known. As the authority for advance ruling is created under SGST/ CGST Act and the rulings are applicable within the particular state only. As the situs of transaction in question is not within the state of Tamil Nadu, then as per provisions of Section 96 of the Central Goods and service Tax Act 2017 (and similar provision under the TNGST Act), the Tamil Nadu Advance Ruling Authority cannot acquire the jurisdiction over the questions raised, hence no ruling can be given on this question. With regard to advance ruling sought for regarding whether exemption is applicable for all sub-contracts which the Applicant will undergo both GSST/ CGST and IGST in future (both interstate and intra state supply), it is observed each contract entered by the applicant has to be assessed for applicability of exemption based on the terms and conditions of the contract and activities undertaken. Advance Ruling cannot be rendered for cases which are hypothetical in nature. The question is not admitted.

Summary

Issues involved:
The judgment addresses the applicability of GST exemption for sub-contract work of Land Reclamation/Solid Waste Management to a Municipal Corporation, and whether the exemption extends to future sub-contracts involving both intrastate and interstate supplies.

Applicability of GST Exemption:
The applicant sought an Advance Ruling on whether providing sub-contract work of Land Reclamation/Solid Waste Management to a Municipal Corporation through a main contractor exempts them from GST payment under Notification No. 12/2017. The Authority examined the contract between the applicant and Biomining India Private Ltd., noting that the service was interstate as the applicant, based in Tamil Nadu, provided services to Biomining India Private Ltd. in Maharashtra. Due to the interstate nature of the supply, the Authority ruled that it lacks jurisdiction under Section 96 of the CGST Act to provide a ruling on this matter.

Exemption for Future Sub-Contracts:
Regarding the exemption's applicability to future sub-contracts involving both intrastate and interstate supplies, the Authority stated that each contract must be assessed individually based on its terms and activities. As Advance Rulings cannot be given for hypothetical scenarios, the question about future sub-contracts was not admitted for consideration.

Conclusion:
The Authority ruled that the question of whether the applicant's sub-contract work is exempt from GST and if the exemption applies to future sub-contracts was not admitted for consideration due to jurisdictional limitations and the hypothetical nature of the inquiry. The ruling emphasized the need for individual assessment of each contract for exemption applicability.