Case Law Details
In re Kapil Sons Explosives LLP (GST AAR Maharashtra)
The registered taxable person M/s Kapil Sons Explosives LLP (Applicant) is engaged in drilling and blasting works using Industrial explosives and other materials.
Applicant has submitted that, M/s CIDCO has given a contract to M/s Balajee Infratech and Constructions Pvt. Ltd. (Balajee) for Drilling, Blasting, Mucking and allied job and reclamation work of the land development for Navi Mumbai International Airport land Development work site at the Vahal Ulwe site of M/s CIDCO. Thereafter, M/s Balajee has subcontracted with the Applicant, to provide only drilling and blasting operation with the usage of explosives for extraction of boulders at the aforementioned site of M/s CIDCO. The works being done by the applicant involves drilling and blasting operation with the use of explosives.
The applicant is of the opinion that, the service rendered by M/s Balajee to M/s CIDCO is covered under Sr. No. 3 (vii) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 which states that, Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent. of the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Governmental Authority or a Government Entity is taxable at 5% GST. Further, the applicant is also of the opinion that, the service rendered by it to M/s Balajee is covered under Sr. No. 3 (x) of Notification No. 11/2017-CT (Rate) dated 28.06.2017
We agree with the applicant’s submissions as well as the submissions of the jurisdictional officer that, the work of blasting with explosives which is subcontracted to the applicant, is a composite supply as defined under the GST Laws.
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