In re M/s Ashok Kumar Choudhary (GST AAR Rajasthan)
What shall be rate of GST on activity of sub-contract for earthwork in relation to construction of access controlled Nagpur-Mumbai Super Communication Expressway (Maharashtra Samruddhi Mahamarg)?
We find that the activity carried out by the applicant does not involve supply of goods whatsoever in any manner and it’s supply of services for Earth Work and other related works. Thus the said activity does not fall under either Composite Supply or Mixed Supply.
Further, as there is no involvement of transfer of property in goods in the above said activity; it cannot be classified under Works Contract Services also.
The activity carried out by the applicant is a supply of Site Preparation Service wherein he will do Excavation in soil, hard rock excavation, embankment, sub-grading, shoulder formation, median fill etc. All these works do not involve any supply of goods and will be carried out via soil modification, alteration only, thus it is a pure service without involvement of goods.
The given activity is thus a Construction Service of Site Preparation falling under heading “Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling and boring and core extraction, digging of trenches”.
The above said construction service is classifiable under SAC 995432 of Annexure to Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) and attracts GST @ 18% (SGST 9% + CGST 9%).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, RAJASTHAN
Note:- Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
