9911796707
TMI Blog2019 (11) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... 11/2017 - Central Tax (Rate) dated 28-06-2017. The applicant is therefore not eligible for the concessional rate of 6% CGST and 6% KG ST under item no. (vi)(a) of Serial number 3 of Notification No.11/2017 - Central Tax (Rate) dated 28-06-2017 - The composite supply of works contract provided by the applicant is taxable at the rate of 9% CGST and 9% KGST under item no. (ii) of serial no. 3 till 28.03.2019 and thereafter at the same rate under item no. (xii) of serial number 3 of the amended Notification No. 11/2017 - Central Tax (Rate) dated 28-06-2017. - KAR ADRG 43/2019 - - - Dated:- 17-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri Ganesh.S, DAR ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS SERVICES TAX ACT, 2017 AND UNDER 98(4) OF THE KARNATAKA GOODS SERVICES TAX ACT, 2017 1. M/s. Maxwell Electrical Engineers, No 4, 9th Main, Near Venkateswara Temple, Vasanthnagar, Bengaluru-560052, having GSTIN number 29AARFM1680P1ZC, has filed an application for Advance Ruling under Section 97 of CGST Act,2017, KGST Act, 2017 read with Rule 104 of CGST Rules 2017 KG ST Rules 2017, in form GST ARA-01 discharging the fee of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , maintenance, renovation, or alteration of - a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession Based on the aforesaid notifications the rate of tax shall be at 6 percent under the CGST Act and 6 percent under the KGST Act, hence 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. 24/2017-Central Tax (Rate), dated 21st September, 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 PERSONAL HEARING: / PROCEEDINGS HELD ON 28-06-2018 6. Sri Ganesh S, Advocate, appeared on behalf of the applicant before the Authority for Advance Ruling and was heard. 6.1 The DAR argued that the applicant undertook turnkey projects for supply, erection, testing, commissioning of transmission lines of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lines, sewers, dams, canals etc.. The applicant is providing supply of service through composite works contracts such as design, erection, testing, commissioning, including pre-commissioning activities in relation to or incidental to installation of transformer of various capacity and providing through electrical infrastructures by extending 11 KV high transmission lines and Low transmission lines. In view of the foregoing nature of supply the provisions of Notification No. 11/2017-CGST dated 28-06-2017 are examined as under. 7.5 Entry at serial number 3 of the Notification No. 11/2017-CGST dated 28-06-2017, as amended from time to time, reads as under (as on 31.12.2018): Sl.No. Chapter, Section or Heading Description of Service 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 consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban); (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; (da) a civil structure or any other original works pertaining to the Economically Weaker Section (EWS) houses constructed under the Affordable Housing in partnership by State or Union territory or local authority or urban development authority under the Housing for All (Urban) Mission/ Pradhan Mantri AwasYojana (Urban); (db) a civil structure or any other original works pertaining to the houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MlG-1)/ Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban); (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. (g) a building owned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of- (a) a civil structure or any other 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. Explanation . - For the purposes of this item, the term 'business' shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. 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 X X X Extracts X X X X X X X X Extracts X X X X ..... o 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. (xi) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. 2.5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Explanation no. (iv)]. (xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii),(ix), (x)and (xi) above and serial number 38 below. 9 - 7.6 Notification No. 11/2017-CGST dated 28-06-2017 was again amended vide Notification No. 03/2019-Central Tax (Rate) dated 29th March, 2019. Item number (ii) has been omitted with effect from 29.03.2019. 7.7 The submissions made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition as enumerated at Para 7.9(a) is satisfied. (b) The second condition is that the work should be predominantly for use other than for commerce, industry, or any other business or profession. In this context we once again examine the Memorandum of Association of Chamundeshwari Electricity Supply Corporation Ltd, the recipient of the supply made by the applicant. The main objects outlined in the Memorandum read as follows: 1. To carry on the business of distribution and supply of electricity in the State of Karnataka and to acquire ... 2. To carry on the business of purchasing, selling, importing, exporting, wheeling, trading of power including finalization of tariff, billing and collection thereof and to enter into any agreements for carrying on such business. 3. To study, investigate, collect information and data, review, operations etc. 4. To do anything which any person engaged in the business of supplying electricity is authorized or required to do under or by virtue of any licence issued to it authorizing such person to supply electricity. 5. Certain incidental Objects of the Company include the aim of acquiring by purchase, lease, exchange, h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
