In re NHPC Ltd. (GST AAAR Uttarakhand)
Members of Uttarakhand Advance Ruling authority have different view on the applicability of GST on the sub-contractor so they made a reference to the appellate authority for hearing and discussion. Appellate authority in the case that whether the exemption available for PWD Uttarakhand and M/s NHPC Ltd, can be extended to the sub-contractor also, decided that works contract services for the road construction provided by the sub-contractor to PWD, Uttarakhand, who in turn is providing works contract services of road Construction to M/s NHPC Ltd is not exempted from GST.
Works contract services for the road construction provided by the sub contractor to PWD, Uttarakhand, who in turn is providing works contract services of road construction to M/s NHPC Ltd is not exempted from GST.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, UTTARAKHAND
The present proceedings are in consequence to a reference to the Appellate Authority for hearing and decision, by the Authority on Advance Rulings for the State of Uttarakhand, in terms of Section 98(5) of the Central Goods and Service Tax Act and Uttarakhand Goods and Service Tax Act, 2017 (hereinafter referred to as “the CGST Act and UKGST Act”), vide Ruling No. 17/2018-19 dated 30.01.2019 passed against application no. 17 made by M/s NHPC Limited, Admn. Building, Tanakpur Power Station, Banbasa, Uttarakhand.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the UKGST 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 UKGST Act.
BRIEF FACTS OF THE CASE
1. In the instant case the Party vide their application under sub-section (1) of Section 97 of the CGST/SGST Act, 2017 sought an Advance Ruling on the following issues:-
(a) Whether the Notification No.12/2017-Central Tax (Rate) dated 28th June 2017. (as amended from time to time) is applicable to the contractors/sub-contractors involved in the construction of Indo-Nepal Border Road or otherwise.
2. Following the personal hearing given to the applicant on 11.01.2019, the members of the Advance Ruling Authority for the state of Uttarakhand viz. Shri Vipin Chandra, and Shri Amit Gupta differed in their opinions and thus gave different rulings.
(A) Shri Vipin Chandra, observed that:- In the background of the issue in hand, the applicant has earlier sought the advance ruling on the applicability of GST on the activity being carried out by them and vide Advance Ruling No. 10/2018-19 dated 22-10-2018, it was held by the authority that their activity is exempted from GST in terms of Notification No.12/2017-Central Tax (Rate) dated 28th June 2017. Now the applicant has sought the advance ruling whether the same work allotted to sub-contractor is also exempted or otherwise.
In this context, I find that there is no entry in the exemption Notification No.12/2017-Central Tax (Rate) dated 28th June 2017. which exempts the supply in question being carried out by the sub-contractors rather entry (iv) of serial no. 3 of Notification No. 11/2017-CT (Rate) dated 28.06.2017 prescribed GST rate @ 12% [CGST 6% + SGST 6%] for supply in question i.e ‘construction of road”.
I further find that Notification No. 11/2017-CT (Rate) dated 28.06.2017 was further amended vide Nnotification no 1/2018- Central Tax (Rate) dated 25-01-2018 8 and the relevant portion of the same reproduce as under:
