In re M/s. P.K. Agarwala (GST AAR Jharkhand)
The term Earth Work has not been defined under any GST provisions. The Webster Dictionary defines Earth Work as ” an embankment or construction made of earth specially one used as a field fortification. The Collins dictionary defines Earth Work as “excavation of earth as in engineering construction; a fortification made of earth. The Wikipedia defines Earth Work as “Earth work are engineering works through the processing of parts of earth surface involving quantities of soil or unformed rocks. After going through different definitions of earth work, we find that Bulk earthworks include the removal, moving or adding of large quantities of soil or rock from a particular area to another. They are done in order to make an area of suitable height and level for a specific purpose.
It is evident that the work order is for supply of services with material. It is also seen from the work order that the first four part of the work order is related with clearing of earth, excavation, supplying & laying of earth and impervious clay. The major part of the contract involves earth work i.e., more than 75% of the work involves earth work, we hold the same.
Since the major part of the work order, i.e., about 96%, is ‘Earth Work’, we find that the said work order qualifies for the benefit of Serial No 3 of notification 39/2017 dated 13.10.2017 issued under the GST Act, being Composite supply of works contract as defined in clause 119 of sec-2 of the CGST Act, 2017, involving pre dominantly earth work i.e. constituting more than 75% of the value of work in contract) provided to Central Government, State government, Union Territory, Local authority, a government authority or a Government Entity. GST will be applicable at the rate of 5%.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, JHARKHAND
The applicant M/s P. K. AGARWALA (herein after referred to P.K.Agarwala) having GSTN No- 220AABFM9005A1Z6 is a partnership firm. The firm M/s P. K. AGARWALA is a contractor carrying of contract work of M/s Uranium Corporation of Ltd., Jadugoda and made the following submission:-
1. the applicant has been rewarded works contract for raising of western site tailing dam at Turamdih vide work order no.-T-964 dated 20.06.2017. In the aforesaid work order more than 75% of the work is the nature of Earth work.
2. In the notification no. 39/2017 integrated tax rate against serial no.-3 states as under:
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