In re ST Engineering Electrnics Limited (GST AAR Tamilnadu)
Whether rate of tax at 6% CGST, available to Composite supply of works contract as defined in clause(119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by way of construction, erection, commissioning, or installation of original works pertaining to Metro, vide- Notification No. 11/2017 amended vide Notification No.1/2018- Central Tax(rate) dated 25th January 2018 is applicable Applicant rendering the above mentioned services?
In the case at hand, the applicant is entrusted with certain works of design, manufacture, installation and commissioning of the Telecommunication systems including signaling system by Siemens who has been awarded the entire work relating to signaling and Telecommunication under CMRL project Phase-1 and from the preceding paragraphs it is seen that the works are composite supply of original work pertaining to railways and the only leg of the entry No. 3(v) of the Notification which has not been established is whether the works satisfies the definition of “Works Contract’ under Section 2(119) of the GST Act for which sufficient documentary proof is not furnished before us. The applicant has expressed his inability to furnish the necessary documentation and have opined that the documents furnished is sufficient for pronouncing the ruling. Therefore, considering all the submissions and that the application is pending before this authority for long, we find it appropriate to hold that the benefit of the entry at Sl.No. 3(v) will be applicable to the applicant subject to the works undertaken by them being Works Contract’ as per Section 2 (119) of the Act and the applicable GST is@ 12% effective from 25.01.2018.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
M/s. ST Engineering Electronics Limited is a wholly owned subsidiary of Singapore Technologies Engineering Limited. Their Project office is located at Third floor No.28/4 (Old No.54/4), Montieth Road, Egmore, Chennai-600008 ( hereinafter called the Applicant or the Company). They are registered under GST with GSTIN 33AAQCS9207A1ZG. They have preferred an application seeking Advance Ruling on,-
Whether rate of tax at 6% CGST, available to Composite supply of works contract as defined in clause(119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by way of construction, erection, commissioning, or installation of original works pertaining to Metro, vide-Notification No. 11/2017 amended vide Notification No.1/2018- Central Tax(rate) dated 25th January 2018 is applicable to a sub-contractor(Applicant) rendering the above mentioned services?
The Applicant has submitted the copy of application in Form GST ARA – 01 and also submitted the copy of Challan evidencing payment of application fees of Rs.5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant is a global technology, defence and engineering group specialising in the aerospace, electronics; land systems and marine sectors. The Company, incorporated in Singapore in 1969 is an electronic system provider that serves customers in the areas of transportation, intelligent building and defence. The Company is a wholly owned subsidiary of Singapore Technologies Engineering Limited. The applicant has stated that they have entered into a Sub-contract agreement with SIEMENS Ltd., India (agreement reference no: ASA-01-Tel-IN Dated 1st September 2011) for providing services in the nature of Design, manufacture, supply installation, testing and commission (including integrated testing and commissioning and operational maintenance) of the Telecommunications Works as part of main Contract of SIEMENS Ltd pertaining to metro rail project in Chennai. SIEMENS Ltd is the main contractor to Chennai Metro Rail Limited (CMRL) for executing metro rail project in Chennai. A segment of the work awarded to SIEMENS under their contract with CMRL is back-to-back sub-contracted to the applicant in the aforesaid agreement. The applicant has stated that their Scope of work as per the Sub-contract agreement is in the nature of overall telecommunications works and consists of the following,-
