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TMI Blog2021 (4) TMI 567X X X X Extracts X X X X X X X X Extracts X X X X ..... ead with Rule 104 of the CGST Rules and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a proprietary concern registered under the Goods and Services 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 ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the main contractor has subcontracted the certain electrical works to M/s. Shaaz Electricals (hereinafter called "first subcontractor"). Further, first sub-contractor has in turn entered into sub-contract agreement with the applicant for providing electrical works. 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) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e concessional rate shall apply to the applicant on the supply of works contract service made to the first sub-contractor. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r given by M/s. Ocean Constructions (India) Private Limited, it is observed that only a part of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plier of service as subcontractor will get concessional rate of tax @ 6% CGST and @ 6% KGST. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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