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2023-TIOL-03-AAR-GST
Concrete Udyog Ltd
GST - Applicant seeks a ruling as to whether composite works contract services supplied to Uttar Pradesh Jal Nigam involving construction & design of prestressed concrete cylinder pipelines (PCCP) and pumping plant for the purpose of supplying water to the Khurja Sewerage Treatment Plant Project from the Mundakhera Reservoir to the pond of Khurja STPP along with all ancillary works such as development of roads/paths, drain septic Tanks, sewer line, water supply system, external electrification, service connection to building, etc would be covered under Entry 3(iii) of the Notification No. 11/2017 -Central Tax (Rate) and attract GST @12%.
Held: Hon'ble High Court, Allahabad (Lucknow Bench) in the Income Tax Appeal No. 128/2008 has held that UP Jal Nigam is not a 'local authority - Although, the aforesaid order in Income Tax Appeal No. 128/2008 denying UP Jal Nigam the status of local authority is in respect of dispute of Income Tax, the same is applicable to instant case as the order of the Hon'ble High Court has been passed after analyzing the definition of 'local authority' contained in General Clauses Act - Moreover, the term 'local authority' has been similarly worded in CGST Act, 2017 as well as General Clauses Act, 1897 - Therefore, UPJN is not a 'local authority' - UPJN is a body corporate formed by the State legislature under UPWSS Act enacted by the UP State Legislature; is inter alia entrusted with the function to operate, run, and maintain any waterworks and sewerage system; therefore, the requirement that the authority must be established to carry out any function entrusted to a Municipality under article 243W of the Constitution has also been fulfilled in the present case and, hence the UPJN is a 'governmental authority' - By way of Notification No. 15/2021 -Central Tax (Rate) dated November 18, 2021, the lower rate of tax of 12% provided by Entry 3(iii) of Notification No. 11/2017 - Central Tax (Rate) dated June 28, 2017, was restricted to works contract supplied to Central Government, State Government, Union territory and a local authority only - As the UPJN does not qualify as a 'local authority' and it qualifies as a governmental authority, tax rate of 18% is applicable on the works contract services provided to UPJN by way of Entry 3(xii) of Notification No. 11/2017 - Central Tax (Rate): AAR
- Application disposed of: AAR
2023-TIOL-02-AAR-GST
India Thermit Corporation Ltd
GST - Applicant is inter-alia engaged in the supply of works contract to the Indian Railways - Activities undertaken by it are composite works contracts supplied by way of construction, erection, commissioning or installation of original works pertaining to Railways - Applicant seeks a ruling on whether the activities undertaken by the Applicant for the Indian Railways are classified under Entry 3(v)(a) of Notification No. 8/2017 -Integrated Tax (Rate) dated 28.06.2017 and the benefit of concessional rate of GST of 12% can be availed in respect of the said supply?
Held: Supply provided by the applicant does not fall under the category of 'new construction' as the applicant is not doing any work relating to new construction - Even in case of work relating to 'construction lines' wherein new railway tracks are constructed, the applicant is not constructing new railway line and only supplying completion and finishing services in respect of 'construction lines' wherein the applicant has to provide welding work and painting work - The standalone contract for welding and painting work is not covered in the definition of original work - During erstwhile regime of service tax, separate service tax rate was provided for original work and completion and finishing work as per Rule 2A(ii) of service Tax (Determination of value) Rules, 2006 - It is pertinent to mention that definition of original work in the service tax regime was the same as in the GST regime - The supply provided by the applicant do not fall under the category of 'all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable' in case of construction lines - Even in case of Open Lines, the railway lines which are replaced on completion of shelf life are not abandoned or damaged structures - Further, there is no erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise during execution of contracts by the applicant - As such, the applicant is not entitled to benefit of entry 3(v)(a) of Notification No. 8/2017 -Integrated Tax (Rate) - Further, entry 3(v) of the Notification No. 8/2017 -Integrated Tax (Rate) dated 28.06.2017 has been omitted vide Notification No. 03/2022 -lntegrated Tax (Rate) dated 13 July 2022 with effect from 18.07.2022 and entry 3(xii) has been amended - As such, the question raised by the applicant has no significance in view of omission of entry 3(v) of the Notification No. 8/2017 -lntegrated Tax (Rate) dated 28.06.2017 with effect from 18.07.2022 - As such, the applicant is not entitled for IGST rate of 12 % after 18.07.2022 or even before 18.07.2022 - And the appropriate rate of IGST payable by the applicant on services provided on 'construction line' as well as 'open line' is 18%: AAR
- Application disposed of: AAR
2023-TIOL-01-AAR-GST
V M Technocoatings
GST - HSN code of the product "eco-friendly expandable paper wrap (honeycomb paper for wrapping) (as replacement of bubble wrap)” is 4823 9013 and not 4808 4090 as claimed by applicant - Tariff Item 4808 covers Paper and Paper board which is corrugated, creped, crinkled, embossed or perforated in rolls or sheets and there is no mention of any packing paper or wrapping paper under this TI heading - Eco-friendly expandable paper wrap (honeycomb paper for wrapping) is used in the primary packing of goods as a cushioning material, separators or edge protector, to make shipping cartons of goods and as pallets and pallet boxes - Tariff Item 4823 covers articles of paper and Tariff Item 4823 9013 has description as ‘Packing and Wrapping paper' and all types of packing and wrapping paper will fall in 4823 9013 which is a specific tariff item for packing and wrapping paper - Although there is no specific entry for the product ‘eco-friendly expandable paper wrap (honeycomb paper for wrapping) in notification 1/2017 -CTR, there is an entry most akin to the product and process (Sl. No. 157 of Schedule III) and which attracts GST @18%: AAR
- Application disposed of: AAR |
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