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TMI Blog2019 (11) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 7 (The Act), undertaken by the supplier (applicant) ie., whether the GST rate 18% or 12% is to be charged by the supplier? 2. If the GST rate 18% (9% CGST+ 9% SGST) as prescribed in serial no. 3, against heading no. 9954 (construction services), specified in Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017, is the rate applicable to the nature of works contract undertaken by the applicant, kindly clarify the following related aspects also: The Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017 has been amended by:- i. Notification No. 20/2017-Central Tax (Rate), dated 22nd August, 2017 -cannot applicable ii. Notification No. 31/2017-Central Tax (Rate), dated 13th October, 2017 iii. Notification No. 1/2018-Central Tax (Rate), dated 25th January, 2018 Wherein the GST rate of 12% (6% CGST + 6% SGST) has been notified in respect of works contract as defined in clause (119) of Section 2 of The Act If so, whether it would be in order for the applicant (supplier) to charge GST at the rate of 12% (6% CGST+6% SGST) or is the GST rate 18%(9% CGST+ 9% SGS'T) applicable to the nature of works contract undertaken by the applicant? 3. The appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of 9 percent. Similarly the SGST is also attracted at 9%. Based on the said notifications, the applicant has charged the tax component and collected and discharged the same. e. Subsequently, the Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017 was amended by the following notifications:- i. Notification No. 20/2017-Central Tax (Rate), dated 22nd August, 2017 ii. Notification No. 31/2017-Central Tax (Rate), dated 13th October, 2017 iii. Notification No. 1 /2018-Central Tax (Rate), dated 25th January, 2018 Based on aforesaid notification the applicant has charged CGST at the rate of six percent. Similarly the SGST was also charged at the rate of six percent. PERSONAL HEARING: / PROCEEDINGS HELD ON 28-06-2018 6. Sri N. Vaidyanathan Charted Accountant appeared on behalf of the applicant, before the Authority for Advance Ruling on 28-06-2018 and was heard. 6.1 The DAR argued that the applicant undertook turnkey projects for supply, erection, testing, commissioning of transmission of towers and terminals at required subcontract works awarded by the principal contractor wherein the applicant had to supply, design, erection, transmission and commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after the issuance of completion certificate, where required, by the competent authority or after its first occupation, which ever is earlier (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 9 - (ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 9 - (iii) construction services other than (i) and (ii) above 9 - 7.5 Subsequently the above notification was amended by Notification No.20/2017 -Central Tax (Rate) dated 22-08-2017 and the entry no.3 after amendment is as under: Sl.No. Chapter, Section, or Heading Description of Services Rate (per cent.) Condition 3 Heading 9954 (Construction Services) (i) Construction of a complex, building, civil structure, or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after the issuance of completion certificate, where required, by the competent authority or af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) railways, excluding monorail and metro; (b) a single residential unit otherwise than as a part of a residential complex; (c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under- (1) the "Affordable Housing in Partnership" component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) mechanized food grain handling system, machinery' or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages 6 - (vi) construction services other than (i), (ii), (iii), (iv) and (v) above 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh private participation" under the Housing for All (Urban) Mission/Pradhan Mantri A was Yojana, only for existing slum dwellers; (d) a civil structure or any other original works pertaining to the "Beneficiary' led individual house-construction / enhancement" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (e) a pollution control or effluent treatment plant, except located as a part of a factory", or (f) a structure meant for funeral, burial or cremation of deceased. 6 - (v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) railways, excluding monorail and metro; (b) a single residential unit otherwise than as a part of a residential complex; (c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 2 of Central Goods and Services Tax Act, 2017 9 - (iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act. 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal 6 - (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a road, bridge, tunnel, or terminal for road transportation for use by general public; (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017. 6 "(vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent, of the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Governmental Authority or a Government Entity. 2.5 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be (viii) Composite supply of works contract as defined in cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintenance, renovation, or alteration of,- (a) a road, bridge, tunnel, or terminal for road transportation for use by general public; (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awas Yojana; (c) a civil structure or any other original works pertaining to the "ln-situ rehabilitation of existing slum dwellers using land as a resource through private participation" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers; (d) a civil structure or any other original works pertaining to the "Beneficiary' led individual house-construction / enhancement" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (e) a pollution control or effluent treatment plant, except located as a part of a factory", or (f) a structure meant for funeral, burial or cremation of deceased. 6 - (v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment, Union territory or local authority, as the case may be (viii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 and associated services, in respect of offshore works contract relating to oil and gas exploration and production (E&.P) in the offshore area beyond 12 nautical miles from the nearest point of the appropriate base line. 6 - "(ix) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item (iii)or item (vi) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. 6 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. (x) Composite supply of works contract as defined in clause (119) of section 2 of the Central G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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