Reetu | Apr 20, 2022 |
GST Applicable on Composite Supply of Work Contract Involving Earth Work: AAR
The Maharashtra Authority of Advance Ruling (AAR Maharashtra) in the matter of M/s. MAHA LAKSHMI BT PATIL HONAI CONSTRUCTION ruled out that GST Applicable on Composite Supply of Work Contract Involving Earth Work.
M/s. Mahalxmi BT Patil Honai Constructions JV (Referred to as JV), a GST registered company, situated at 363/11, Balaji Niwas, Deep Bungalow Chowk, Shivajinagar, Pune-411 016, and engaged in construction of infrastructure projects was formed on 16/12/2008 to undertake construction of Jeur Tunnel Under (Linking Ujani Reservoir to Sina, Kolegaon reservoir) Krishna Marathwada Irrigation Project, Tal.Karmala, Dist. Solarpur a work allotted by Executive Engineer, Lift Irrigation Division, Osmanabad Project awarded by Godavari Marathwada Irrigation Development Corporation (GMIDC), Aurangabad.
The Question was that, “1.Whether the said contract is covered under the term “Earth Work” and therefore covered under SI No 3A-Chapter No. 9954 as per Notification No. 12/2017-C.T. (Rate) dated 28.06.2017, as amended by Notification No. 2/2018-C.T. (Rate} dated 25.01.2018, w.e.f. 25.01.2018?
2. If the above answer is negative, then whether the said contract is covered under the term “Earth Work” and therefore covered under SI No Chapter No. 9954 as per – Notification No. 31/2017-Central Tax (Rate} dated 13th October 2017?
3. If we are covered any of above Notifications i.e. 31/2017-Central Tax (Rate) or 02/2018 Central Tax (Rate} then what is the meaning of “Earthwork”?”
The Authority Ruled out that, “(i). Answered in the negative. (ii) The said contract is covered under SI No 3 (vii) of Notification No. 11/2021- CTR dated 28.06.2017 as amended by Notification No. 31/2017-C.T. (Rate) dated 13th October 2017 but will be covered under the said Entry only till 31.12.2021, as discussed above. (iii) The subject question does not fall under any of the clauses to Section 97 (2) of the CGST Act, 2017 and therefore is not specifically answered.”
The Ruling was made by Shri. Rajiv Magoo and Shri. T. R. Ramnani.
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