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TMI Blog2022 (4) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... e. NIL? 2. If the above answer is negative, then Advance Ruling for whether we can avail the benefit of SI No 3 (x) - Chapter No. 9954 as per Notification No. 01/2018-C.T. (Rate) dated 25th January 2018 (amendment in the Notification No 11/2017- C.T. (Rate) dated 28th June 2017)? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT FACTS: 2.1 M/s. Mahalxmi B T Patil Honai Constructions JV (Referred to as JV) registered under Goods and Service Tax Act, 2017, situated at 363/11, Balaji Niwas, Shivajinagar, Pune-411 016 is engaged in the business of Construction of infrastructure projects. The said IV was formed on 16/12/2008 to undertake construction of Jeur Tunnel under (Linking Ujani Reservoir to Sina, Kolegaon reservoir) Krishna M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elfth Schedule of Article 243W of the Constitution which covers "Water supply for domestic, industrial and commercial purposes", would cover the activities carried out by the JV and on the same line, applicant, as a JV member can also take the benefit of NIL rate of tax. WRITTEN SUBMISSION DATED 24.03.2022- It is submitted that an identical case involving identical set of questions in the matter of Soma Mohite Joint Venture was decided in favour of the Applicants by the Maharashtra Appellate Authority for Advance Ruling. The contract relating to Soma Mohite Joint Venture was identical to the contracts involved in the instant case and even the project is one and the same added by GMIDC. It was held that the work carried out by the Applicant JV is covered by Entry 3(vii) of Notification No. 11/2017-CTR as amended by Notification No. 31/2017-CTR. Accordingly, sub-contractors of IV are also eligible for the same tax rate under Sr. No. 3(x) of the said Notification. 2.8 It is requested that the aforesaid questions raised, may be decided in favour of the Applicants in terms of Order No. MAH/AAAR/SS-RJ/21/2019-20 dtd 20.01.2020 of Soma Mohite Joint Venture. 2.9 Assistant Commissioner, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s has received the sub-contract work order from M/s. Mahalaxmi Infra - B.T. Patil, Honai Construction (1V) for sub-contracting work of construction of Jeur Tunnel under Krishna Marathwada Irrigation project. The said work order awarded by Godawari Marathwada Irrigation Development Corporation (GMIDC), Aurangabad (Maharashtra Government undertaking). 3.2 Sch.-B annexed with work order shows, particulars of work items, Unit, quantity, Rate and Total Amount for work to be executed & particulars of various work items as per Sch-B are as below- Item No. 1: Excavation for Tunnel work in all kind of soft-strata including ventilation arrangement (workorder in Cubic Meter). Item No. 2: Excavation for Tunnel work in all kind of rock including ventilation arrangement (work order in Cubic Meter). item No. 3: Providing and fabrication, transporting and erecting structural supports (work order in Metric Ton). Item No. 4: Providing and rock bolting in position (work order in running meter). Item No. 5: Providing and fixing in position M.S. reinforcement (work order in metric ton). Item No. 6: Providing and applying material component shot crating in two layers (work order in sq. mete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are awarded by Principal Contractor. Although work order given is for composite price, work item schedule annexed to work order is for various units of measurement and various prices. Hence, it cannot be said that Composite price is involved in execution of above work order. 2) Different elements aren't available separately - As per work order, various supply of services and goods such as : * Excavation for tunnel work * Providing Fabrication and erection of structural steel supports * Providing and fixing Rock bolting * Providing and fixing M.S. Reinforcement * Providing and fixing chain link * Providing and laying cement concrete * Removal of excavated stuff * Providing drainage arrangement which are executed by the applicant are available separately in such type of works-contract and same can be availed by Principal Contractor by giving work orders to various individual suppliers of services and goods. As such, work executed by the applicant is not a naturally bundled service and does not qualify under Composite supply. 3) The nature of various services - services rendered by applicant, such as excavation, removal of excavated stuff, drainage arrangement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roject, Tal. Karmala, Dist. Solapur, by the Godavari Marathwada Irrigation Development Corporation (GMIDC), Aurangabad. 5.3 The applicant has submitted that, the impugned contract/work order given to the Principal Contractor is consisting of Earth Work such as Excavation for Tunnel, removing of excavated stuff, fabrication, transporting, providing steel support, rock bolting, reinforcement, fixing of chain link, cement concerting, providing drainage arrangement etc. wherein total earth work is approximately 91% and construction work is approximately 9% wherein transfer of property is involved. According to the applicant the impugned activity of the Principal Contractor is a Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017, where such supply is to a Governmental Authority/Government Entity. 5.4 The applicant has submitted that the Principal Contractor has outsourced fifty percent of the work to the applicant. While making detailed submissions regarding the activity of the Principal Contractor, the applicant has also submitted that, the two questions raised by the applicant are in respect of the impugned supply provided to the Princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments in the Notification No 11/2017- C.T.(Rate) dt 28.06.2017 and Notification No 31/2017- C.T. (Rate) dt 13.10.2017) does not apply to supply made by the applicant to M/s Mahalaxmi Infra - B.T. Patil, Honai Construction (JV). 5.6 The applicant has relied on the decision given by the Maharashtra Appellate Authority for Advance Ruling vide Order No. MAH/AAAR/SS-RJ/21/2019-20 dated 20.01.2020, in the matter of Soma Mohite Joint Venture (SMJV) wherein it was held that the work carried out by Soma Mohite Joint Venture was covered by Entry 3(vii) of Notification No. 11/2017 -CTR as amended by Notification No. 31/2017-CTR dated 13.10.2017. 5.7.1 We have already observed in the Advance Ruling Application filed by the Principal Contractor in respect of the same Work Order that, the impugned Contract/Work Order, involves activities consisting of Earth Work such as Excavation for Tunnel, removing of excavated stuff, fabrication, transporting, providing steel support, rock bolting, reinforcement, fixing of chain link cement concerting, providing drainage arrangement etc. wherein, the total earth work is approximately 91% and construction work is approximately 9% and where transfer of prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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] (x) 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 (vii) above to the Central Government, State Government, Union territory, a 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. 5.9.3 Section 3 (x) of Notification No. 11/2017 CTR dated 20.06.2017 as amended, covers Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item (vii) of Sr No 3 ..... 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