9911796707
TMI Blog2024 (7) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. The main aim of this wing is the upgradation of the State highway roads. The strategic option study made for the upgradation of State highways and major district roads conducted by M/s. Rail India Technical and Economic Service Limited led to the formation of KSTP under the Kerala Public Works Department - the works contract services provided by the applicant to KSTP by way of construction of roads and bridges is for the use of the general public. As such, the rate of tax for works contract services provided by the applicant to KSTP by way of construction of roads and bridges for public use will be taxable @ 12% - till 17.07.2022 the rate of tax for works contract services by way of construction of roads and bridges for public use was 12% (CGST @ 6% and SGST @ 6%) and thereafter, i.e, w.e.f 18.07.2022 it is 18%. The services provided by the applicant by way of construction of roads and bridges for public use will be taxable @ 12% (CGST @ 6% and SGST @ 6%) if the time of supply as determined in accordance with section 14 of the CGST Act falls any date prior to 18.07.2022, otherwise it will be taxable @ 18%. - SMT. GAYATHRI P.G., IRS SHRI. ABDUL LATHEEF, K, MEMBER Authorized Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment or a separate Government entity. The applicant submits that, if the status of the awarder falls under the category of Government entity, then the tax rate on works contract services provided to them will be applicable to 18% as per the above Notification. The matter of uncertainty on collection of tax has been brought to the notice of KSTP, but it was informed that KSTP is a part or sub division of Kerala State Public Works Department and therefore the change in tax rate is not applicable to them. Hence the applicant is to be informed whether the position stated by KSTP regarding rate of tax applicable is correct. Also the clarification from the advance ruling authority would help the applicant to avoid future consequences from the tax authorities and unnecessary litigation with KSTP. 5. Comments of the Jurisdictional Officer The application was forwarded to the jurisdictional officer as per provisions of section 98 (1) of the CGST Act. The Jurisdictional officer has not responded about the pending or decided proceedings, if any, against the applicant in connection with the subject matter. 6. Personal hearing The applicant was granted an opportunity for personal hearing on 16. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (2) of section 97 of the CGST Act applicability of a notification issued under the provisions of this Act and hence admitted the application on merits. 7.6. As per entry no. 3(iv) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 of the Department of Revenue, Ministry of Finance, as amended vide notification No. 20/2017-Central Tax (Rate) dated. 22.08.2017 of the Department of Revenue, Ministry of Finance the rate of tax for some of the works contract services has been notified as 12% (CGST @ 6% and SGST (a), 6%). The said entry is reproduced below; SI. No. Chapter, Section or Heading Description of service Rate (Percent) Condition 1 2 3 4 5 3 9954 (Construction services) (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 11/2017-Central Tax (Rate) dated 28.06.2017. The amendments in SI. No. 3 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 notified w.e.f 18.07.2022 is reproduced under; (A) in the Table, - (I) against serial number 3, in column (3), - (a) items (iii), (iv), (v), (va), (vi) and (ix) and the corresponding entries relating thereto in columns (4) and (5) shall be omitted; (b) against items (vii) and (x), for the entry in column (4), the entry 6 shall be substituted; (c) in item (xii), for the brackets and figures (iii), (iv), (v), (va), (vi), (vii), (viii), (ix) , the brackets and figures (vii), (viii), shall be substituted; 7.10. As per the aforementioned amendment w.e.f 18.07.2022, sl.no. 3(iv) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 has been omitted and thereby the reduced rate of tax @ 12% (CGST @ 6% and SGST @ 6%) for construction of roads and bridges for general public use is enhanced to 18% (CGST@ 9% and SGST@ 9%). 7.11. Consequently, from the discussions made in para 7.6 to 7.10, it is evident that till 17.07.2022 the rate of tax for works contract services by way of construction of roads and bridges for public use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplanation .-For the purposes of this section, the date of receipt of payment shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. 7.14. Thus, we conclude that the services provided by the applicant by way of construction of roads and bridges for public use will be taxable @ 12% (CGST @ 6% and SGST @ 6%) if the time of supply as determined in accordance with section 14 of the CGST Act falls any date prior to 18.07.2022, otherwise it will be taxable @ 18% (CGST @ 9% and SGST @ 9%). In the light of the facts and legal position as stated above, the following ruling is issued: RULING Question No.1. What is the status of KSTP in GST viz, Government Authority or Government Entity or Government Department? RULING : No ruling as the question is not in respect of any of the subject matters enlisted under sub-section (2) of section 97 of the CGST Act. Question No.2. What is the GST rate on the works contract services provided by a Government Contractor to KSTP ie., construction of Roads and bridges for public use? RULING : The works contract services provided by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
