In re Vinayak Buildcon (GST AAR Rajasthan)
As the question posed by the applicant is related to supplies undertaken by them prior to the date of filing of the application for advance ruling, no ruling can be given on the questions. Hence, the subject application for advance ruling made by the applicant is not maintainable and rejected under the provisions of the GST Act, 2017.
Read AAAR Order:- AAR ruling cannot be given on supplies prior to filing of application
FULL TEXT OF THE ORDER OF AUTHORITY FOR 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.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the “GST Act”.
A. SUBMISSION AND INTERPRETATION OF THE APPLICANT:
1. That M/s. Shri Vinayak Buildcon (hereinafter referred to as the “applicant”) are registered under GST having GSTIN 08ACMFS6195A1ZU. Applicant is engaged in supply of services of construction of residential houses under affordable housing scheme under Chief Minister’s Awas Yojana-2015 framed to achieve the objective of “Affordable Housing for All” under Pradhan Mantri Awas Yojana of Government of India on pure labour basis.
2. That the applicant has entered into an agreement with M/s. Sanwaliya Buildcreation LLP (hereinafter referred to as “Builder”) who is engaged in construction of Residential Buildings on the plot of land allotted by Urban Improvement Trust (UIT), Udaipur vide letter dated 30.07.2018 under the affordable housing scheme under Chief Minister’s Awas Yojana-2015. Copy of UIT’s allotment letter dated 30.07.2018 is attached. Further, the Chief Minister’s Awas Yojana-2015 is the policy framed by the Rajasthan Government to achieve the objective of “Affordable Housing for All” under Pradhan Mantri Awas Yojana of Government of India. An extract of the message of the former Hon’ble Chief Minister of Rajasthan from the policy is attached. Contract of construction of residential houses to the builder has been awarded by the Rajasthan Government under the Chief Minister’s Awas Yojana-2015.
3. That under the above agreement, builder has sublet the labour work related to the Civil Work and development of such residential houses to the applicant. The scope of work which is being sublet to the applicant is for pure labour services for construction, excavation, levelling, dressing, earth filling, soiling, reinforcement, RCC work, brick masonry, plaster work, flooring, toilet tiles, stone/marble choukhat, gutai, MS railing, outside painting, fixing of doors and windows, fixing of railing on staircase, electrical fittings, sanitary fitting and drainage, etc. There is no material or goods in the scope of applicant. Copy of agreement is attached.
4. To clarify further, the supply of material for the above mentioned works shall be in the scope of the main contractor and only labour work has been sub contracted to the applicants.
Question(s) on which advance ruling is required.
1. Whether the services provided by the applicant falls under the exemption entry at Si. No 10 of the Notification No. 12/2017-Central Tax (Rate), dated 28-06-2017 and eligible for exemption from payment of GST?
Statement of Applicant’s Interpretation of Law/ Facts
1. Applicant understands that under GST law, scope of supply is provided in Section 7 of the CGST Act, 2017, relevant portion of Section 7 reads as under:
7. Scope of supply — (1) For the purposes of this Act, the expression “supply” includes—
(a) all forms of supply of roods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration;
2. Section 9(1) of the CGST Act, 2017 provides of levy of GST on such supply covered under Section 7. Section 9(1) reads as under:
9. Levy and collection.— (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.
3. Further, Section 11(1) of the CGST Act, 2017 provides the power to grant exemption from levy of tax. Section 11(1) reads as below:
11. Power to grant Exemption— (1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification.
4. In exercise of the powers conferred by above section, government has issued Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 wherein at Si. No. 10, following exemption has been provided.
