In re M/s. Vishwanath Projects Limited (GST AAR Telangana)
Whether EPC contract in respect of power distribution and transmission company fall under the category of “Government Entity” As per GST Notification number 1/2018 – Central Tax (Rate), if so the rate of GST applicable
Advance Ruling issued
(a) Services Rendered to M/s OPTCL falls under services provided to a Government entity.
(b) The applicable rate of tax is 18% (9% CGST + 9% SGST) for the services referred to by the applicant
FULL TEXT OF ORDER OF THE AUTHORITY OF ADVANCE RULING, TELANGANA
[Under Section 100(1) of the CGST/TGST Act, 2017, any person aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order]
1. M/s. Vishwanath Projects Limited, 3-5-874/A, #401, R.K.Vipanchi estates, Hyderaguda, Hyderabad – 500 029 (hereinafter referred to as ‘the applicant’), registered under GSTIN No. 36AACCV2054N1Z3 has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST and TGST Rules.
2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression ‘GST Act’ would be a common reference to both CGST Act and TGST Act.
3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted.
4. QUESTION RAISED
Whether EPC Contract in respect of power distribution and Transmission company fall under the category of “Government Entity” as per GST notification number 1/2018 – Central Tax (Rate), if so the rate of GST applicable.
On Verification of basic information of the applicant, it is observed that the applicant falls under State Jurisdiction, i.e. Assistant Commissioner (State Tax), Narayanaguda – M.J Market Circle, Hyderabad. Accordingly, the application has been forwarded to the jurisdictional officer to offer their remarks as per the Section 98(1) of TSGST Act, 2017. It is submitted that there is ‘No’ pendency of the issue in respect of M/s Vishwanath Project Ltd., as such the VAT Audit & CST Assessment was completed upto June, 2017 in the above case.
5. THE FACTS OF THE CASE HAVING A BEARING ON THE QUESTIONS
a. The applicant is providing services viz., Supply, Erection. Testing & Commissioning of 51 Nos. 33/11kV Substations with Associated Lines to M/s Odisha Power Transmission Corporation Limited, Janapath, Bhubaneswar(herein after referred to as “OPTCL). The applicant desires to get ruling as to whether OPTCL is a Government Entity and if so the rate of tax in respect of aforementioned services provided by them to OPTCL.
b. As per the applicant’s interpretation, the power distribution and transmission companies are treated as Government Entity and the applicable GST rate is 12%.
6. PERSONAL HEARING
A personal hearing was held on 20-12-2019 at 3.00 PM, Mr. V. Sri Harsha, CFO & Meher Tej, Authorised representative of M/s. Vishwanath Projects Limited, appeared for the personal hearing and reiterated the facts mentioned above.
7. DISCUSSION & FINDINGS
We have gone considered the submissions made by the applicant in their application for advance ruling as well as the additional submissions made by Sri A. K. R. S. V. Mehertes & Sri Harsha during the personal hearing. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts.
At the outset, we would like to state that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the TGST Act.
It is noticed that M/s Odisha Power Transmission Corporation Limited, Janapath, Bhubaneswar, desires the contractor to execute the contract, for “Supply, Erection. Testing & Commissioning of 51 Nos. 33/11kV Substations with Associated Lines in SOUTHCO area within the districts of Ganjam, Gajapati, Kandhamal, Koraput, Malkangiri, Rayagada, Boudh & Nabarangpur in Odisha on EPC contract basis” as per “NIT / ODSSP/OPTCL/10/Phase-III dated 27-06-2015, and Tender document No. ODSSP/ PH-III (PKG-2)]SOUTHCO/2015-16 and has accepted the bid of the Contractor for the execution of this contract.
As per the Notification No. 11/2017 – CGST, dt. 28-06-2017 issued in G.O.Ms No. 110, Revenue (CT-II) Department, dt. 29-06-2017 the entry in serial number 3 reads as under :
