GST rate on services by sub-sub-contractor to sub-contractor pertaining to irrigation, construction

In re Shreeji Earth Movers (GST AAAR Gujarat)

a) At what rate of tax the liability should be determined on services provided by appellant (sub-contractors) to the main contractor pertaining to the irrigation, construction and maintenance works to the irrigation department, State of Gujarat?

b) Under which head we should classify our services to execute irrigation, construction and maintenance work supplied to the irrigation department, State of Gujarat?

c) Whether to charge a tax rate of 12% GST or 18% GST?

AAR not agree with the contention of the appellant that they are eligible for the concessional rate of GST @12% in terms of Notification No. 20/2017-CT (R) dated 22.08.2017 and Notification No. 01/2018-CT(Rate) dated 25.01.2018 as the activity undertaken by the appellant is not covered under st. No. 3(iii) or under 3(ix) of the Notification No. 11/2017-CT(R) dated 28.06.2017 as amended and agree with the findings of the Gujarat Authority for Advance Ruling that the supply made by the appellant is not covered under entry No. 3(iii) or 3(ix) of Notification No. 11/2017-CT(R) dated 28.06.2017, as amended. The appellant is liable to discharge tax rate CGST @9% and GGST@9% under Entry No 3(ii) of Notification No. 11/2017-CT(R) dated 28.06.2017 further amended vide Entry No.3(xii) of Notification ibid

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