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TMI Blog2024 (8) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... r protection to bridges as part of construction of bridges as well as for routine maintenance/renovation of the bridges and the bridges are for road transportation for use by the general public - Vide sl. no. 3 (iv)(a), the composite supply of works contract supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a bridge for road transportation for use by general public would be taxable @ 12%. Moreover, it is noted that such rate of tax is applicable in all cases where said works contract services are provided for the use of the general public. The status or class or category of the recipient of such works contract service is immaterial to decide the rate of tax. If the time of supply of the said services discussed in this ruling as determined in accordance with section 14 of the CGST Act falls between 01.07.2017 to 21.08.2017, the supply will be taxable @ 18% (CGST @ 9% and SGST @ 9%), if the supply is made between 22.08.2017 to 17.07.2022, the same will be taxable @ 12% (CGST @ 6% and SGST @ 6%) and thereafter, it will be taxable @ 18% (CGST @ 9% and SGST @ 9%) w.e.f. 18.07.2022. Eligibili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Transport and Highways (MORTH) - Govt b. National Highway Authority of India - Govt Authority c. Kerala State Public Works Department - Govt d. Roads Bridges Corporation of Kerala - Govt Entity e. Kerala State Construction Corporation - Govt Entity f. KITCO- Govt Entity g. Cherian Varkey Construction Company (On sub-contract model for Govt projects) - Main Contractor - Private Entity 4.3. The applicant submits that works contract services provided by them are in relation to bridges for general use by the public and are squarely covered by Notification 11/2017-CT (Rate) Entry 3 (iv) which attracts the rate of 12%. The applicant submits that the entry is independent in nature and service specific not conditional on nature of service recipient, or whether the supplier stands in the shoes of the principal contractor or sub-contractor. 4.4. The applicant interprets the classification of services and applicable rate of tax as per Notification 11/2017-Central Tax (Rate) and raised questions in connection with the classification and applicable rate of tax on Works Contract services for application of protective polymer coating for bridges as Main Contractor and Works Contract services for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the submissions made in the application and oral submissions made while virtual hearing which were taken on record. 7. Discussion and conclusion. 7.1. We have carefully examined the statement of facts and the oral submissions made by the applicant at the time of hearing and the contentions on which advance ruling is sought by the applicant falls within the purview of clause (a) (b) of sub-section (2) of Section 97 of the CGST Act, 2017 and hence admitted. 7.2. The issue to be decided is the classification of services provided by the applicant and relevant Service Code (Tariff), applicable rate of tax under Notification 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time on various services provided by the applicant and the eligibility of services for exemption from the whole of tax leviable thereon under Notification No. 12/2017-CT(Rate) dated 28.06.2017, as amended from time to time. 7.3. The applicant is a partnership firm engaged in the provisions of Works Contract services by way of application of polymer protection to bridges as part of construction of the bridges as well as for routine maintenance/renovation of the bridges. 7.4. The applicant provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or building interiors, exteriors, railings, gratings, doors, windows, and other engineering structures, as well as paint removal services. As per the explanatory notes to the scheme of classification of services, Service Code (Tariff) 995473-painting services includes;- i. painting services (principally decorative) of building interiors and similar services (e.g., application of coatings, lacquer, etc.); ii. painting services of building exteriors (principally for protection); iii. painting services of railings, gratings, doors and window frames of buildings, etc; iv. painting services of other engineering structures; v. paint removal services 7.10. Therefore, the works rendered by the applicant to awarders squarely falls under the definition of works contract in section 2 (119) of the CGST Act 2017 including material by way of application of polymer protection to bridges as part of construction of bridges as well as for routine maintenance/renovation of the bridges and the same will be treated as supply of service under Service Code (Tariff) 995473. 7.11. The second issue which is to be discussed is the rate of tax as applicable under Notification 11/2017-Central Tax (Rate) as ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Mantn 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 pollution control or effluent treatment plant, except located as a part of a factory; or (f) a structure mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e) are as follows; (3) (4) (5) (vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 201 7, involving predominantly earth work (that is, constituting more than 75 percent, of the value of the works contract) provided to the Central Government, State Government, Union territory or a local authority. 6 (viii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 201 7 and associated services, in respect of offshore works contract relating to oil and gas exploration and production (E P) in the offshore area beyond 12 nautical miles from the nearest point of the appropriate baseline. 6 - (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 or a local authority. 6 (xi) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of supply shall be the date of receipt of payment; (b) in case the goods or services or both have been supplied after the change in rate of tax, - (i) where the payment is received after the change in rate of tax but the invoice has been issued prior to the change in rate of tax, the time of supply shall be the date of receipt of payment; or (ii) where the invoice has been issued and payment is received before the change in rate of tax, the time of supply shall be the date of receipt of payment or date of issue of invoice, whichever is earlier; or (iii) where the invoice has been issued after the change in rate of tax but the payment is received before the change in rate of tax, the time of supply shall be the date of issue of invoice: Provided that the date of receipt of payment shall be the date of credit in the bank account if such credit in the bank account is after four working days from the date of change in the rate of tax. Explanation .-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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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