Services of removal of hump given to Delhi Govt Exempt from GST [Read AAR]

The West Bengal Authority of Advance Ruling (AAR West Bengal) in the matter of DREDGING AND DESILTATION COMPANY PRIVATE LIMITED has ruled out that Services of removal of hump given to Delhi Govt Exempt from GST.

The applicant submits that he has been rewarded work order by Government of Delhi (Irrigation and Flood Control Department) for “dredging in Najafgarh Drain from RD. 5800m near Ghumanhera Bridge to RD. 13000 m near Jhatikar Bridge” and the applicant has entered into a contract with the concerned department of Government of Delhi for the execution of above-mentioned work.

The Question and Ruling are as follows:

The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01:

1) Whether Government of Delhi – Irrigation and Flood Control Department comes under the purview of Union Territory?

2) Will our supply be covered under Sl. No. 3 of Notification No. 9/ 2017 Integrated Tax (Rate) dated 28.06.2017- or Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time?

3) What will be the rate of GST in our case?

RULING

Supply of services being undertaken by the applicant for removal of hump (silt/ earth/ manure/ sludge etc.) by dredging at Najafgarh Drain as awarded by the Irrigation and Flood Control Department, Government of Delhi shall be covered under Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and therefore shall be exempted from payment of tax.

For Official Ruling Download PDF Given Below: