Case Law Details
In re M/s Kalyan Toll Infrastructure Ltd (GST AAR Madhya Pradesh)
In the instant case we find that the applicant have been awarded a consolidated contract for carrying out different specified works at Shri Singaji Thermal Power Project, which includes erection, commissioning, installation etc. We also find it necessary to place on record that there are certain items mentioned in the subject contract including, but not limited to, ‘Fitness Centre cum Gym’, which definitely do not find place in the ambit of essential work entrusted by the State Government to MPPGCL. Needless to mention that such work shall not qualify for exemption as envisaged under Sr.No.3(vi) to the Notification no. 11/2017-CT(Rate), in as much as it does not fall within the scope of work entrusted by Government of Madhya Pradesh to MPPGCL.
We also find it necessary to place on record the Ruling given by this Authority in the matter of M/s. Shreeji Infrastructures P.Ltd. vide order dtd. 18.10.2018 whereunder the issue of construction of residential quarters has been held to be out of purview of exemption provided under Notification No. 11/2017-CT(Rate) dtd. 28.06.2017.
In view of the discussions foregoing, we are inclined to hold that the work entrusted vide subject tender document/contract awarded to the Applicant by MPPGCL cannot be termed as composite supply and thus entire work under the said contract shall not be entitled to concessional rate in terms of Notification No.11/2017-CT(R) dtd. 28.06.2017. However, we also hold that the supply of goods and/or services which squarely fall within the ambit of scope of work entrusted to MPPGCL by the Government of Madhya Pradesh shall be entitled for concessional rate under Sr.No.3(vi) to Notification No. 11/2017-CT(R). Accordingly, each and every supply under the subject contract shall be treated separately for determining the rate of tax under the CGST Act 2017 read with the provisions of GST Tariff and respective exemption notifications.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MADHYA PRADESH
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