In re URC Construction Private Limited (GST AAR Odisha)
Question : What is the applicable rate of Goods and Service Tax [GST] on the Contract awarded by Ms. NBCC (INDIA) LIMITED , an Executing Agency of behalf of Ms. SAIL, for construction of ISPAT Post graduate Medical Institute and super specialty Hospital at Rourkela Steel Plant for SAIL in the State of Odisha on Design, Engineering, Procurement and Construction (EPC) basis.
Answer:- The rate of GST on supply of works contract service which is being supplied to M/s SAIL, Rourkela for construction of ISPAT Post Graduate Medical Institute and Super Specialty Hospital would merit entitlement for concessional rate of GST @ 12% [CGST @ 6% + SGST @ 6%] in terms of Notification No. 11/2017- Central Tax (Rate) dated 28-06-2017 (and as amended).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,ODISHA
Subject: Ms. URC Construction Private Limited, Plot No. E-17, BJB Nagar, Ward BH-CI -Khordha, Bhubaneswar, 751014 Odisha, ( herein after referred to as the ‘Applicant’) having a GSTIN : 21AAACU2425Q1ZC, is a company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the OGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the SGST Act.
1.0 The Advance Ruling is sought on the question of applicable rate of Goods and Service Tax [GST] on the Contract awarded by Ms. NBCC (INDIA) LIMITED [in short ‘NBCC’], an Executing Agency of behalf of Ms. SAIL, for construction of ISPAT Post graduate Medical Institute and super specialty Hospital at Rourkela Steel Plant for SAIL in the State of Odisha on Design, Engineering, Procurement and Construction (EPC) basis.
2.0 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST 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 OGST Act.
3.0 Submission of the Applicant
3.1 The applicant, while filing the application for seeking advance ruling, explained the facts, cited various judicial pronouncements in support of its submission. It was submitted that the applicant, inter alia, is a national contractor and the flagship company of the URC Group, having its registered office situated at 119, Power House Road, Erode – 638001, Tamil Nadu.
3.2 It was submitted that the applicant has been awarded a contract by M/s NBCC vide letter no. NBCC/CGM (CPG)/2019/122 dated 15-01-2019 for Construction of ISPAT Post Graduate Medical Institute and Super Specialty Hospital at Rourkela Steel Plant for SAIL in Odisha on Design, Engineering, Procurement and Construction (EPC) basis at a total contract value of Rs. 259,60,13,257.00 (Rupee Two Hundred Fifty Nine Crores Sixty Lakhs Thirteen Thousands Two Hundred Fifty Seven only) inclusive of all taxes, duties, cess, statutory levies with a rider that contract Price will be adjusted prospectively for any increase/decrease in GST rate on Works Contract notified by Government of India.
3.3 A Memorandum of Understanding [MoU] was made on 13-08-2018 between Ms. SAIL and Ms. NBCC (India) Limited wherein Ms. NBCC (India) Limited has agreed to work as the Executing Agency for undertaking and completing the work accordingly on behalf of SAIL.
3.4 It was submitted that GST Rate on Works Contract Service is governed by Notification No. 11/2017- Central Tax (Rate) dated 28-06-2017 amended by 24/2017-C.T. (Rate) dated 21-09-2017 amended by 31/2017-C.T. (Rate) dated 13-10-2017 amended by 46/2017-C.T. (Rate) dated 14-11-2017 amended by 17/2018- C.T. (Rate) dated 26-07-2018. The relevant extract of the same is stated as under-
