9911796707
TMI Blog2021 (4) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... subcontractor providing services to Main contractor by executing the works mentioned in the serial number 3 of clause (iii) and clause (vi) which is exclusively covered under the clause (ix) of serial no.3 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 (as amended from time to time) will be exempted from payment of GST subject to M/s. Karnataka Neeravari Nigam Limited is qualified to be called as a Government Entity. In the present case, it is M/s. Shaaz Electricals who is the sub-contractor who is covered under the said entry. As there is no privity of contract between the applicant and M/s. Ocean Constructions (India) Private Limited and the contract is between the applicant and M/s. Shaaz Electricals, the services pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices Tax Acts and is engaged in the business of execution of works contracts relating to electrical works and electrical infrastructure. 3. The applicant has sought advance ruling in respect of the following question:- 1. Whether concessional rate of GST shall apply to the sub-contractor who is sub-contracted from a sub-contractor of the main contractor, the main contractor being provider of works contract to a Government entity? 4. Admissibility of the application: The question is about the applicability of a notification issued under the provisions of the Act and hence is admissible under Section 97(2)(b) of the CGST Act 2017 5. The applicant furnishes some facts relevant to the issue: 5.1 The applicant is a propri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks. 5.5 M/s. Karnataka Neeravari Nigam Ltd is being registered as a company which is wholly owned Government of Karnataka, as per the provisions of the Companies Act, 1956 with effect from 9th December 1998 for civil, electrical and mechanical works. 5.6 The applicant is of the opinion that the services provided by him falls under clause (ix) to serial number 3 of Notification 11/2017-Central Tax (Rate) dated 28-06-2017, as amended by Notification No.01/2018-Centra1 Tax (Rate) dated 13-10-2017 and the concessional rate of tax@12% shall apply to him. Description of the Service Rate (per cent.) Condition (ix) Composite supply of works Contract as de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PERSONAL HEARING: / PROCEEDINGS HELD ON 08-10-2020 6. Sri Dayananda K, Charted Accountant, Duly Authorized Representative of the applicant appeared for personal hearing proceedings held on 08.10.2020 reiterated the facts narrated in their application. FINDINGS DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 8. We have considered the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electrical work is subcontracted to M/s. Shaaz Electricals, who is the first sub-contractor. 9.3 The copy of the quotation raised by the applicant to M/s. Shaaz Electricals for the electrification work of the 11KV HT substation with MCC panel clearly shows that the applicant is executing part of the electrical works as per the instructions of M/s. Shaaz Electricals as Second sub-contractor. 9.4 In the instant case, it is seen that there is no privity of contract between the applicant and M/s. Karnataka Neeravari Nigam Ltd. The original contract is awarded by M/s. Karnataka Neeravari Nigam Limited to M/s. Ocean Constructions (India) Private Limited. Hence as per the notification, any subcontractor providing services to Main contractor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST. 10.1 The entry no.3 (vi) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) explains that any taxable person providing such supply of service to the Central Government, State Government, Union Territory, 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 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 predomin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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