9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 1093 - AAR - GSTScope of supply - Composite supply or not - Government of Delhi removal of hump (silt/ earth/ manure/ sludge etc.) by dredging at Najafgarh Drain as awarded by the Irrigation and Flood Control Department - comes under the purview of Union Territory - Exemption from GST under Sl. No. 3 of Notification No. 9/2017 Integrated Tax (Rate) dated 28.06.2017- or Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time? - rate of GST - HELD THAT - The instant work falls within the ambit of matter listed at Sl. No. 6 of the Twelfth Schedule of 243 W of the Constitution of India, i.e. Public health sanitation conservancy and solid waste management . The records submitted by the applicant also includes certificate dated 07.08.2023 under No. F.22(113)/2022-23/AB-CD-I/3889, issued by the Executive Engineer, Civil Division-I, Irrigation Flood Control Department, Government of NCT of Delhi, New Delhi, wherein he has certified that the works contract constitutes mainly of dredging and earthwork excavation which is pure service work and the cost of material transferred and consumed for execution and completion of the work contract is less than 5 (five) percent of the total work order value, if any required . This clearly establishes that there is an element of goods also in the supply, although in a small percentage - the instant supply is found to be a composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply. Entry at Sl No. 3A of Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017, as amended Sl. No. 3A of Notification No. 12/2017-Central Tax (rate) dated 28.06.2017, as amended describes that Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution is exempted.
Issues Involved:
The issues involved in the judgment are the interpretation of provisions of the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017, the classification of services provided under a government contract, and the applicability of specific notifications related to GST rates. Interpretation of Provisions: The judgment clarifies that the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017 have similar provisions unless specifically mentioned otherwise. The expression 'GST Act' refers to both acts. The applicant was awarded a work order by the Government of Delhi for dredging in Najafgarh Drain, and the contract mainly involves dredging and earthwork excavation. Advance Ruling Application: The applicant raised questions regarding the classification of the supply under specific GST notifications. The application was admitted for questions related to the rate of GST applicable in the case. Submission of the Applicant: The applicant argued that the work undertaken falls within the purview of public health sanitation conservancy and solid waste management. They highlighted the nature of the work, emphasizing it as a pure service work with minimal material consumption. Submission of the Revenue: The revenue authority did not express any view on the matter. Observations & Findings: The Authority examined the nature of the work involving desilting and cleaning of Najafgarh Drain. It was determined that the work falls under the category of public health sanitation conservancy and solid waste management. The records submitted by the applicant confirmed the presence of goods in the supply, albeit in a small percentage. Judgment & Ruling: The Authority ruled that the supply of services for removal of hump by dredging at Najafgarh Drain, awarded by the Irrigation and Flood Control Department, Government of Delhi, is exempted from tax under Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
|
