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TMI Blog2020 (10) TMI 1351X X X X Extracts X X X X X X X X Extracts X X X X ..... heading no.9954 (construction services), specified Notification No. 11/2017-Cental Tax (Rate) dated 28th June 2017, is the rate applicable to the nature of works contract undertaken by the applicant, kindly clarify the following related aspects also: The Notification No. 11/2017- Central Tax (Rate) dated 28th June 2017 has been amended by:- a. Notification No. 20/2017- Central Tax (Rate), dated 22nd August, 2017. b. Notification No. 24/2017- Central Tax (Rate), dated 21st September, 2017. Wherein the GST rate of 12% (6% CGST + 6% SGST) has been notified in respect of works contract as defined in clause (119) of Section 2 of the Act. If so, whether the amendment through Notification No. 20/2017 and 24/2017 will be effective from the date of Notification No. 11/2017 and whether it would be in order for the applicant (supplier) to charge GST at the rate of 12% (6% CGST + 6% SGST) or is the GST rate 18% (9% CGST+ 9% SGST) applicable to the of nature of work contract undertaken by the applicant? 2. Facts of the case:- 2.1.1 The applicant is engaged in works contract by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reted that the rate of GST is 12% w.e.f. 1st July, 2017. 3.3 Based on the said notifications, the applicant has charged the tax Component and collected and discharged GST Liability at Rate 12% (CGST 6% and SGST 6%) on invoices issued from 01st July 2017 itself, and with the presumption, that the rate of GST has been amended w.e.f. 1st July 2017, as the intention of the Honourable GST Council. 3.4 As it is no where mentioned in the notifications itself the date of changes in Rate of GST or effectiveness of the Notification and the rate of GST be applicable, but with the conclusion of the 20th GST Council meeting on 5th August 2017 [a copy of the Details of Decision taken, is being enclosed] and it was announced that the Tax Rate of GST on the above services is being reduced from 18% to 12%. 3.5 Again the 21st GST Council Meeting held on 9th September 2017 and corrected a lacuna left in the 20th GST Council Meeting regarding Works Contract Services as defined in Clause 119 of Section 2 of the GST Act. 3.6 In summary, it is the presumption and interpretation taken from the above episode that the Intention of the Honourable GST Council was only to reduce the Tax rate from very begi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (3) of the Table below, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2), shall be levied at the rate as specified in the corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table:- Table Sl No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 1 Chapter 99 All Services 2 Section 5 Construction Services 3 Heading 9954 (Construction services) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. 6 - (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a road, bridge, tunnel, or terminal for road transportation for use by general public; (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; (c) a civil structure or any other original works pertaining to the "In-situ rehabilitation of existing slum dwellers using land as a resource through private participation" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers; (d) a civil structure or any other original works pertaining to the "Beneficiary led individual house construction / enhancement" under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (e) a polluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28thJune, 2017, namely:- In the said notification, in the Table, against serial number 3, for item (vi) in column (3) and the entries relating thereto, in columns (3), (4) and (5), the following shall be substituted, namely:- (3) (4) (5) "(vi)Services provided 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 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. (vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above. 6 - 5.2(v) Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tax liability is @ 12% (CGST 6% and SGST 6%) from 01st July, 2017 itself whereas the effective date of the said Notification is the Notification date itself. Notification No. 11/2017-Central Tax (Rate) dated-28/06/2017 is applicable with effect from the notification date viz. 28/06/2017. Similarly Notification No. 20/2017-Central Tax (Rate) dated-22nd August, 2017 is applicable with effect from the notification date viz. 22/08/2017 and Notification No. 24/2017-Central Tax (Rate) dated 21st September, 2017 is applicable with effect from 21/09/2017. 6. Having regard io the facts and circumstances of the case and discussions as above, we pass the following order:- ORDER (Under section 98 of the Chhattisgarh Goods and Services Tax Act' 2017) No.STC/AAR/03/2020/41 Raipur Dated 08/10/2020 The ruling so sought by the Applicant is accordingly answered as under: RULING i. The rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of Central goods and Services Act, 2017 is 18% (9% CGST+9% SGST) till 28/06/2017 as stipulated under Notification No.11/2017-CentraI Tax (Rate) and is 12% (6% CGST+6% SGST) thereafter, with effect fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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