Case Law Details
In re National Highways Authority of India (GST AAR Uttar Pradesh)
The AAR examines whether the work done by NHAI in shifting transmission lines for road widening falls under the definition of supply as per Section 15(2)(b) of the CGST Act. It also considers whether GST is payable to MVVNL on the full amount of work done and the potential issue of double taxation.
The AAR notes that NHAI bears the cost of highway diversification, including the shifting, dismantling, and raising of transmission lines owned by MVVNL. However, there is no consideration or reimbursement flowing from MVVNL to NHAI. The contention is that only supervision and shutdown charges by MVVNL for the shifting/raising of power transmission lines are liable for GST.
The AAR examines relevant clauses of the EPC contract agreement and concludes that the supervision charges are the only payments made by NHAI to MVVNL. MVVNL is not a supplier of goods or services related to the shifting of transmission lines; instead, NHAI and its contractors handle the procurement of materials and services. MVVNL’s involvement is limited to supervision services.
Based on the definition of supply, consideration, and goods under the GST Act, the AAR determines that the shifting of transmission lines does not qualify as a supply. The constructed power transmission lines are not classified as goods, and there is no consideration involved between NHAI and MVVNL for the shifting activity. Therefore, the applicability of GST does not arise.
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