9911796707
TMI Blog2023 (9) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Tax Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce ruling is sought for is found to be covered under clause (c) and (e) of sub-section (2) of section 97 of the GST Act. 1.6 The applicant states that the question raised in the application has neither been decided by nor is pending before any authority under any provision of the GST Act. 1.7 The officer concerned from the revenue has raised no objection to the admission of the application. 1.8 The application is, therefore, admitted. 2. Submission of the Applicant Submission of the applicant made along with the application (FORM GST ARA 01): 2.1 The project is funded by a mix of debt, equity and grant. Debt allowed to be taken by the concessionaire from banks / financial institutions as per the concession agreement is allowed upto 75 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her appreciated that since payment made by the way of annuity is essentially a delayed or deferred payment, the loss incurred by the recipient of the annuity must be factored in. Consequent upon such factoring in, such aspect of 'delay', which is certain to be made as the mode of payment is by way of annuity, this interest quotient over and above the consideration money is being allowed to the recipient i.e. the Applicant Company by the KMDA that is to say the awarder of the Project/Contract. 2.6 Thus, this part of interest payable at the SBI MCLR rate, does not form a part of the consideration part of the value of the Project/Contract i.e. to say it does not form a part of the "supply value" of the Project/Contract, relevant to the GST la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with section 13 of the GST Act. Section 13 of the GST Act outlines the principles for determining when a service has been supplied, i.e. "Time of Supply of Services", which then determines when the service provider must pay the GST to the Government. It further lays down that what quantum should be considered to be a quantum relating to "supply of services". 2.11 As per the terms and conditions of the Concession Agreement, the applicant as the concessionaire is designing, financing, constructing, renovating and operating and maintaining of the Facilities in accordance with the said Agreement during the concession period and transferring it to the Government on completion of the concession period. The cost of the construction, oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t apply here and the applicant is very well liable to calculate GST on the interest of the annuity payments receivable as and when issued. 3. Submission of the Revenue The officer concerned from the revenue has not expressed any view on the issue raised by the applicant. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised advocates of the applicant during the course of personal hearing. 4.2 The applicant is a concessionaire who has been entrusted the work for development of sewage treatment plants in Kolkata Metropolitan Development Authority (KMDA) Area. As a consideration for the said work, the applicant would be paid certain amount during the per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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