Case Law Details
In re KPC Projects Ltd. (GST AAR Maharashtra)
In the instant case there is Composite supply of works contract provided to UPRNN, a Government Entity by way of construction of a Residential Quarters meant for the use of the employees of ESIC and therefore, it can be said that the supply is in respect of a ‘civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession’.
However we also find that, the above mentioned Rate Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 has been further amended by Notification No. 15/2021 – CTR dated 18.11.2021 (with effect from 01.01.2022) and in Sr. No 3, in column (3), in the heading “Description of Services”, in item (vi), for the words “Union territory, a local authority, a Governmental Authority or a Government Entity” the words “Union territory or a local authority” have been substituted and that means the words “or a Governmental authority or a Government Entity” are omitted. Therefore, with effect from 01.01.2022, the impugned services supplied by the applicant will not be covered under Sr. No. 3 (vi) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time.
During the course of the final hearing, the Authorised representative of the applicant informed this Authority that the impugned services are not being rendered at present and they will begin the construction as per the Work Order only in the future as a proposed activity.
Thus we find that the Sr. No. 3 (vi) mentioned above will not be applicable to the activity to be undertaken by the applicant at a future date. The Authorised representative of the applicant also agreed that the provisions of Sr. No. 3 (vi) will not be applicable to applicant’s activities in view of the amendment brought about in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 vide Notification No. 15/2021 – CTR dated 18.11.2021 (with effect from 01.01.2022). However, this authority has been asked by the applicant to answer all its questions.
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