Case Law Details
In re Rajshyama Construction (P) Ltd (GST AAR Uttarakhand)
Section 2(119) of the Act: works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;
On perusal of said notification, we find that the work contract services in respect of construction/ widening of road provided by the applicant to his main contractor is covered under entry at Serial No. 3(iv) of the said notification. We also find that before amendment vide notification dated 25.01.2018 (supra), specific entry on rate of services provided by the sub-contractor to main contractor were introduced, the activity of the applicant was remain covered under the scope of Serial No. 3(iv) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended), which provided the rate of GST @ 12%) [6% CGST + 6% SGST] on the services supplied by way of construction of road. Thus, the services provided by the applicant as sub-contractor to principal contractors continues to be covered under the Serial No. 3(iv) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time).
Further Appellate Authority for Advance Ruling, Maharashtra in the case of M/S Shree Construction and Authority for Advance Rulings, Punjab in the case of M/S S.P. Singla Constructions (P.) Ltd reported in [20191 taxmann.com 448 (AAAR-MAHARASHTRA) and [20191 111 taxmann.com 356 (AARTUNJAB) respectively on the same issue has passed the ruling that services provided by the sub-contractor to main contractor is covered tinder Serial No. 3(iv) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) and attracts GST @ 12% CGST + 6% SGST].
The services pertaining to construction/ widening of road provided by the applicant as a sub-contractor in respect of work contract falls under the scope of Serial No. 3(iv) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) and attracts GST @ 12% [6% CGST + 6% SGST] as on date.
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