9911796707
TMI Blog2022 (4) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... e Recipient shall be Central/State Government, the Union Territory, a local authority, a Government Authority or a Government Entity. c. The Civil Structure/ Original Works must be predominantly meant for use other than for commerce, industry or any other business or profession. The subject contract is for the construction of immovable property wherein transfer of property in goods is involved in the execution of subject contract. It is held that subject supply is works contract service. The supply comprises supply of the following: A type Fire station; A type Admin building; B type building; C type officers quarters; site development works; VDS roads; compound wall; watchman and Pump room. The subject supply is a composite supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) involves the following stages such as: (a) A Type Admin Building (b) A Type Fire Station (c) B Type Building (d) C- Type Building Officers Quarters (f) Site Development Works (g) V.D.S. Roads (h) Compound Wall (i) Watchman and Pump Room. It is submitted that this is an ongoing activity as on the date of filing this advance ruling application. 2. The applicant submits as follows: (i) The activity of Construction of Fire Station and Staff Quarters AT T.P.S NO- 42 (Bhimrad), F.P NO-65, in SWZ(A) is a supply of service within the meaning of Section 7(1)(a) of the CGST Act,2017 read with Section 2(102) of the said Act. (ii) There is a charge of CGST and SGST on the said supply of service under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 pub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Board constituted under article 371 1[and article 371J] of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution (vii) Surat Municipal Corporation is a municipality within the meaning of Article 243P of the Constitution of India read with Article 243Q(c) thereof. (viii) The said contract for the construction of Fire Station and Staff Quarters AT T.P.S NO- 42 (Bhimrad), F.P No-65 , in SWZ(A) at Bhimrad, Surat involves supply of goods along with labour on the part of the applicant and is thus a works contract within the meaning of Section 2(119) of the CGST Act, 2017. (ix) Since, (a) Surat Municipal Corporation is engaged as a public authority in so far as the said Construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred to as the said NT) , as amended from time to time and last amended by Notification Number 21/2012-Central Tax(Rate) dated 31.12.2021 w.e.f. 01.01.2022? Personal Hearing: 5. Virtual hearing granted on 22-3-22 was attended by Shri Purvin Shah, CA and he reiterated the submission. Revenue Submission: 6. Central Revenue vide letter dated 11-3-22 submitted as follows: (i) The relevant provision under para 3(vi)(a)of Notification No.11/2017-Central Tax dated 28.06.2017 is as under: (a) a civil structure or any other original work meant predominantly for use other than for commerce (industry) or any other business or profession; (b) .. (c) Explanation : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act. 8. We have carefully considered all the submissions. We hold that for subject to find entry at 3(vi)(a) of said NT, the following criteria is to be satisfied: a. Supply shall be Composite supply of Works Contract. b. Service Recipient shall be Central/State Government, the Union Territory, a local authority, a Government Authority or a Government Entity. c. The Civil Structure/ Original Works must be predominantly meant for use other than for commerce, industry or any other business or profession. 9. We find that the subject contract is for the construction of immovable property wherein transfer of property in goods is involved in the execution of subject contract. We hold that subject supply is works contract se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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