Case Law Details
In re State Industrial Development Corporation of Uttaranchal Ltd (GST AAR Uttarakhand)
Whether double charging of GST as mentioned in draft estimates submitted by PITCUL/UPCL in respect of contract involving supply of equipment/machinery & erection, installation & commissioning services with civil work is correct as per the present GST regime?
The component of GST as mentioned in the draft estimate (s) submitted by M/s PITCUL and M/s UPCL in respect of contract involving supply of equipment/ machinery & erection, installation & commissioning services with civil work, is the cost for them and is one of the many components which constitutes the transaction value for the supply in question and is the price actually payable (transaction value) for the said supply of goods & services (Under the draft estimates / contract referred to in the application) to the applicant and hence is in consonance to the provisions of the GST Act, 2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, UTTARAKHAND
1. This is an application under Sub-Section (1) of Section 97 of the Central Goods & Service Tax Act, 2017 and Uttarakhand State Goods & Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s State Industrial Development Corporation of Uttaranchal Ltd., (SIDCUL), 29IIE, IT Park, Sahastradhara Road, Dehradun, Uttarakhand, 248001 (herein after referred to as the “applicant”) and registered with GSTIN – 05AAHCS7324R2ZQ under the CGST Act, 2017 read with the provisions of the UKGST Act, 2017. In the application dated 02.05.2022, the applicant submitted that the work of Electrification and or Construction (Erection, installation and commissioning) of Electric Substations/ Increase in the capacity of Electric Substations etc. are being undertaken through M/s Uttarakhand Power Corporation Ltd. (UPCL) (a Government of Uttarakhand undertaking) and M/s Power Transmission Corporation of Uttarakhand Limited (PITCUL) (a Government of Uttarakhand undertaking) and both of these entities are not eligible to avail the Input Tax Credit (ITC) of the GST paid by them, on the Goods and Services supplied by different vendors. Thereafter, while issuing draft estimates to the applicant for the Works Contract, M/s UPCL / M/s PITCUL, charges GST twice, firstly on the value charged by the different vendors and then again on the value arrived at after adding other components namely Contingency Charges, O/H & Supervision Charges, Labour Cess on Centralized Mat. etc., consequently paying GST on the transaction value which also includes GST, hence against the spirit of the statute.
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