In re Dee Vee Projects limited (GST AAR Chhattisgarh)
The AAR, Chhattisgarh in the matter of M/s Dee Vee Projects Limited [Advance Ruling No. STC/AAR/03/2020/41 dated October 8, 2020] has ruled that the Notification amending the tax rate from 18% to 12% on Composite Supply of Works Contract can only be applied prospectively, if an enactment does not expressly provides that it should be deemed to have come into effect form a past date.
Facts:
M/s Dee Vee Projects Limited (“the Applicant”) is in the business of works contract by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration.
Subsequently, the Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017 (“the Services Rate Notification”) was amended by the Notification No. 20/2017 dated August 22, 2017 and Notification No. 24/2017 dated September 21, 2017 (“the Impugned Amendment Notifications”) and based on these amendments the Applicant charged and paid Goods and Services Tax (“GST”) at the rate of 12% on the services provided in between July to September 2017.
The Applicant contended that the date of effectiveness of the amendments was nowhere mentioned in the Impugned Amendment Notifications. So, it is presumed, that the intention of the GST Council was only to reduce the rate of tax from 18% to 12% from very beginning.
Issue:
Whether the Impugned Amendment Notifications to the Services Rate Notification effective prospectively or retrospectively?
Held
The AAR, Chhattisgarh in Advance Ruling No. STC/AAR/03/2020/41 held as under:
