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TMI Blog2021 (8) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to collect the same from the recipient of the service. The TDS amount deducted by the Department could be utilised by the applicant while making the payment of the liability but that does not preclude him from paying the tax. Time of supply - HELD THAT:- Section 142(2)(a) of the CGST Act requires the applicant to issue a tax invoice within 30 days from the date of price revision and if the tax invoice is issued within the stipulated time limit, then the date of issue of invoice would be the time of supply for the additional price revision and in case the tax invoice is not issued within the stipulated time, then the time of supply would be the date of price revision. In case where the payment is received earlier to these dates, then the date of receipt of payment would be the time of supply as per Section 13 of the CGST Act. - KAR ADRG 43/2021 - - - Dated:- 30-7-2021 - DR. M.P. RAVI PRASAD AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by : Sri Shivayogiswamy, Advocate and Duly Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s Aishwarya Earth Movers, (called as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .4 The applicant further states that after handing over the said Bridge, revised estimate was approved by the PWD Department vide its letter dated 15-06-2020 and 11-06-2020. Consequently, the applicant has also executed supplementary agreements on 15-06-2020. Subsequently, the PWD Department has paid part of the contract amounts of ₹ 5,56,285/ and ₹ 1,48,26,658/- on 29-12-2018. 4.5 The applicant further submitted that for the said contract amount at ₹ 1,48,26,658/-, the PWD Department has deducted TDS at the rate of 1% under CGST Act and 1% under SGST Act. In view of the fact that PWD Department is liable to pay the tax at the rate of 12% (6% under CGST and 6% under SGST Act), the applicant states that he had rejected the said TDS certificate. 5. APPLICANT'S INTERPRETATION OF LAW: 5.1 Section 142(2)(a) of the GST Act, states as under,- where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised upwards on or after the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the amount received from the Executive Engineer, ZPPRED Division, Mangalore towards Tax Invoice No.038 and 039 dated 25.01.2019 and 040 dated 22.02.2019 and 042 dated 01.05.2019? or (c) the PWD Department is liable to pay GST under the GST Act or VAT under KVAT Act? 8. This office has received comments from the Office of the Commissioner of Central Excise and Central (GST) Tax and the same is reproduced below:- i. The applicant is holder of GSTIN 29AAHPU7408H1Z8 which is under the administrative control of State GST i.e., LVO 265 (Puttur). ii. Upto 30-06-2017, the PWD department has deducted the amounts at the rate of 4% under KVAT Act. iii. As per the contract, the applicant has completed construction of bridge and the approach road and handed it over to the PWD prior to 01-07-2017. The revised estimate was approved by the department after 01-07-2017 and the applicant has executed supplementary agreements after 01-07-2017. iv. The miscellaneous transitional provision is appended below: As per Section 142(2)(a) of the GST Act,- where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the tax is paid. x. In view, of the above, it appears that the appellant is liable to discharge applicable GST and recover the same from PWD. The time of supply would be treated as the time when the return is filed/ payment is made. xi. As regards the supplementary agreements of 15.06.2020, no comments can be offered on the issue of time of supply as insufficient details are provided. It is not known whether the contract is in relation to fresh additional work or it pertains to the construction of bridge and approach road which is already constructed and handed over to PWD in June 2017. xii. In view of what is stated above, it appears that the appellant is liable to discharge applicable GST and recover the same from PWD. The time of supply would be treated as the time when the return is filed or payment is made. PERSONAL HEARING/PROCEEDINGS HELD ON 30-06-2021 9. Sri Shivayogi swamy, Advocate Authorised Representative of the applicant appeared for personal hearing proceedings held on 30-06-202land reiterated the facts narrated in their application. FINDINGS DISCUSSION 10. At the outset we would like to make it clear that the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be done under the original agreement was at 13,81,45,034.33 and the approximate value of work to be done under the supplemental agreement was at ₹ 80,33,192.86 (Workslip amount) and ₹ 3,75,35,549.19 (E.I.R.L. Amount). The applicant has not clearly stated whether these contracts were for new additional works or revised valuation of the earlier work done. 14. The applicant has produced the running account bill in which it is seen that the tender amount is at ₹ 13,81,45,034.33. The total value of contract is written as ₹ 15,05,00,346-00 and the previous payment was made ₹ 13,32,09,924-00, withheld for want of LOC at ₹ 24,63,764-00 and the balance paid as per the said running bill was at ₹ 1,48,26,658-00. Be it what may be, it may be either new works in continuation of old contracted work or revised work. 15. The applicant has not produced the tax invoices raised except for one tax invoice bearing no.026 dated 01.04.2018 for a basic value of ₹ 5,56,285-00 with CGST at ₹ 33,377-00 @6% and SGST at ₹ 33,377-00 @6%, totaling to ₹ 6,23,039-00. 16. As could be seen from the above, the question before this Authority is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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