In re Sealwel Corporation Private Limited (GST AAR Andhra Pradesh)
The works under discussion have been undertaken to execute/implement various projects for (a) conversion of existing LT network into High Voltage Distribution system (HDVS); (b) supply, erection, testing & commissioning of 11 KV autorecloers, 11 KV sectionalisers to industrial feeders on full turn-key basis; and (c) supply, erection, testing & commissioning of 11 KV autorecloers, 11 KV sectionalisers to industrial feeders on full turn-key basis under Integrated Power Development Scheme (IPDS).
As seen from the nature of the work stated in Annexure-II by the applicant, the works are of industrial nature as those works are to be done to industrial feeders too.
Further, the applicant revealed that the contractee is collecting security deposits from the customers. Moreover, the Government of Andhra Pradesh is reimbursing the money for agricultural services to the contractee on behalf of the customers. Therefore, the works executed are to a business entity by the applicant. The contractee is not rendering any non-commercial services in as much as they are getting reimbursed for their commercial activity on behalf of their customers. Therefore, this situation cannot be called as non-commercial at no stretch of imagination.
The above works undertaken by APEPDCL are for business purpose and the benefit of Concessional Rate of 12% (6% under Central tax and 6% State tax) are any other concessional rate is NOT available to the applicant.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, ANDHRA PRADESH
ORDER
(Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub- section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017)
1. The present application has been filed U/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APSGT Act respectively) by M/s Sealwel Corporation Private Limited (hereinafter referred to as applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act.
3. Brief Facts of the case:
M/s Sealwel Corporation Private Limited, Door No. 50/83/15, 2nd floor Opp: Saibaba Temple, Madhuranagar, Seethammapeta, Visakhapatnam – 530016 (hereinafter referred to as the Applicant) are engaged in the business of execution of works contracts relating to electrical works and electrical infrastructure. The applicants submitted that they, at present, executed the following works:
