In re Ms. R.B. Construction Company (GST AAAR Gujarat)
M/s. R.B. Construction Co. is not entitled, under sub-sections (3) and (6) of Section 140 of the CGST Act, 2017 and the GGST Act, 2017 to avail input tax credit. In respect of that part of supply made by M/s. R.B. Construction Co., wherein time of supply is on or after the appointed date, Goods and Services Tax is required to be paid.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING GUJARAT
The appellant M/s. R.B. Construction Company is engaged in execution of works contract. The appellant was registered under the erstwhile Gujarat Value Added Tax Act and was holding a permission to pay tax on a lump-sum basis. The appellant was exempt from holding registration under Service Tax regime.
2. The appellant had bid in a tender issued by the Rajkot Municipal Corporation (RMC) before the advent of the Goods and Services Tax Act, to supply pipes, lay the pipes in desired formation as planned by the Government and to test the pipes against the leakages and then commission the project. Based on the schedule of payments, the appellant had to raise an invoice, out of which the Government would retain some part as retention and release the balance amount and upon final completion and testing of the network of the pipeline, the balance dues of the appellant are released marking the completion of the project. The nature of the work of the tender being a works contract, the appellant used to discharge its liability as per the rates specified in the Gujarat Value Added Tax Act, without claiming any benefit of the input tax credit on any items purchased (big or small) and used in the work as specified in the tender.
3. The release of the payment of the supply of pipes is tied up to different stages and laying of pipe lines fixed by the RMC as follows
