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TMI Blog2019 (6) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... k also involves earth work for filling in the compound, tank, low land, ditches etc. with good earth spread in layers, including breaking clods and consolidating the same by ramming and dressing. It is, therefore, not a contract for the supply of goods, but the transfer of property in such goods in the course of preparing the site for construction of the New Central Correctional Home at Baruipur. It, therefore, amounts to improving and modifying land - an immovable property and is works contract, as defined under section 2(119) of the GST Act. The Applicant s supply is, therefore, classifiable as site preparation service (SAC Group 99543) and taxable @ 18% under Sl No. 3(xii) of Notification No. 11/2017-CT (Rate) dated 28/06/2017 (corres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... district Correction Home, Baruipur. He seeks a ruling on whether it is classifiable as a supply of sand (HSN 2505). 1.2 The question is admissible under section 97(2)(a) of the GST Act. The Applicant declares that the issue raised in the application is not pending nor decided in any proceedings under any provisions of the GST Act. 1.3 The matter came up for hearing under section 98(2) of the GST Act on 08/05/2019. In his written submission dated 23/04/2019, the officer concerned from the Revenue did not object to the admissibility of the Application. The Application was, therefore, admitted on 08/05/2019. However, while the application was being heard on merit under section 98(4) of the GST Act, the concerned officer from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AUTHORITY FOR ADVANCE RULING, JHARKHAND of the Authority for Advance Ruling, Jharkhand (hereinafter the AAR) in the matter of M/s P.K. Agarwala. The AAR observes that in the said case, the supplier is providing works contract service to a government entity. More than 75% of the value of the supply constitutes earthwork. The supply is, therefore, taxable under Sl No. 3 (vii) of Notification No. 39/2017-IGST dated 13/10/2017. The Applicant argues the ratio of the above case applies to his supply. 2.2 At the same time, the Applicant insists that his supply is classifiable under HSN 2505, being a supply of sand. In support of his argument, he submits copies of the contracts, which provide information as below: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ready for subsequent construction work, which merits classification under HSN 9954 and taxable @ 18% in terms of the GST Tariff (Service) Act, 2017. 4. Observations and findings of this Authority 4.1 In terms of the description of the work, contained in the work orders, the Applicant is required to fill in the foundation or plinth by silver sand in layers and consolidating the same by saturation with water ramming. The work also involves earth work for filling in the compound, tank, low land, ditches etc. with good earth spread in layers, including breaking clods and consolidating the same by ramming and dressing. It is, therefore, not a contract for the supply of goods, but the transfer of property in such goods in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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