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2020 (1) TMI 1007 - AAR - GSTPure labour contract services - For construction of a civil structure or any other original works under PMAY - Applicability of N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 - classification and HSN for services provided by the applicant - HELD THAT - The scope of above said entry is not person-centric but project-centric. The entry does not speak of contractor or sub-contractor but supply of pure services by way of construction under certain projects. It clearly stipulates that whosoever is supplying the pure labour contract services for the construction of a civil structure or any other original works under PMAY is exempted from GST. The services of pure labour contract supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works under PMAY is exempted from GST vide Entry 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended).
Issues involved:
1. Applicability of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 to the applicant. 2. Classification and HSN for services provided by the applicant. Issue 1: Applicability of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 to the applicant: The applicant, a sub-contractor in a construction project under PMAY, sought an advance ruling on whether Entry 10 of the said notification exempting pure labour contract services applied to their services. The jurisdictional officer opined that the exemption should be available to the sub-contractor as well. The ruling authority analyzed the agreement between the applicant and the main contractor, finding that the applicant was engaged in supplying pure labour contract services for the construction of flats under PMAY. The authority referred to the specific services listed in the notification and concluded that the exemption applied project-centrically, exempting services for construction under PMAY from GST. Thus, the ruling stated that the services provided by the applicant fell under Entry 10 of the Notification, making them exempt from GST. Issue 2: Classification and HSN for services provided by the applicant: The ruling did not directly address this issue as the focus was on the applicability of the notification to the applicant's services. The ruling authority's analysis primarily revolved around the interpretation of the notification and its relevance to the applicant's situation. Therefore, no specific classification or HSN code was provided in the ruling related to the services provided by the applicant. In conclusion, the ruling clarified that the services provided by the applicant, a sub-contractor in a construction project under PMAY, were exempt from GST under Entry 10 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The ruling highlighted the project-centric nature of the exemption, emphasizing that the exemption applied to pure labour contract services for construction under PMAY.
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