Case Law Details
In re Agrawal Buildcon (GST AAR Chhattisgarh)
i. The benefit of entry at Sl.no. 3(v)(a) of Notification No. 11/2017 Central Tax(Rate) dated 28.06.2017 as amended, vide Notification 01/2018 Central Tax(Rate) dated 25.01.2018 and various other amendments from time to time, lastly amended vide Notification no. 22/2021-Central Tax (Rate) dated 31.12.2021 would be eligible to M/s Agrawal Buildcon, C/o Agrawal Traders, Main Road, Korba, Chhattisgarh, 495677 (GSTIN-22ASSPA1067D1Z7), the applicant, provided that the works undertaken by them qualifies as “Composite supply” as stipulated under Section 2 (30) of CGST Act, 2017 as also the said work undertaken satisfies the condition of being ‘Works Contract’ as per Section 2 (119) of the Act, and if so the applicable rate of GST would be @ 12% effective from 25.01.2018. In cases other than above the said work would attract GST @ 18% under the residual entry at Sr. no. 3(xii) of Notification No. 11/2017 Central Tax iRate) dated 28.06.2017 as amended. This authority on the basis of records furnished and available on record, is not in a position to conclusively hold that the works, as is forthcoming from the “letter of acceptance” issued by RITES LIMITED supra, intended to be undertaken by the applicant qualifies being treated as ‘Composite supply’ as per Section 2 (30) of CGST Act, 2017 or are ‘Works Contract’ as defined under Section 2 (119) of CGST Act, 2017, as discussed herein above.
ii. There is no change in the rate of GST with effect from 1.1.2022 on such composite supply of works contracts as defined in Section 2(119) of the Central Goods and Services Tax Act, 2017 supplied by way of construction, erection, commissioning, or installation of original works pertaining to railways.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, CHHATTISGARH
M/s Agrawal Buildcon, C/o Agrawal Traders, Main Road, Korba, Chhattisgarh, 495677 (here in after referred to as the applicant) GSTIN-22ASSPA1067D1Z7 has filed an application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 dated 02/02/2022 enclosing duly filled in Form ARA-Ol (the application form for Advance Ruling) along with certain annexure and attachments seeking advance ruling as to-What should be the rate of tax on their work, will it be 12% or 18%? What is the current tax rate of tax on their work, Is there any change on rote of Tax since 1.1.2022 or till date.
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