In re Building Roads Infrastructure & Construction Private Limited (GST AAR Andhra Pradesh)
Question: What is the classification of the ‘works contract’ services pertaining to construction, erection, commissioning and completion of ‘Bridges and Roads’ provided by the applicant as a subcontractor to the Contractors who have been awarded the construction contract pertaining to construction/widening of roads by the Government Entities such as Nationa Highway Authority of India.
Answer: The service provided by the applicant falls under Serial No 3 (iv) of the Notification No.11/2017 as amended from time to time.
Question: Clarification for rate of tax chargeable on the outward supplies? i.e., on the RA bills raised on main contractor.
Answer: Rate of Tax applicable is 12°/o (CGST 6% + SGST 6 %).
Question: Whether eligible to claim input tax credit on inward supply of the following goods namely, JCB, Road Roller, Grader, Hydra Crane, Transit Mixer, Generator, Excavator and Sensor Paver?
Answer: Affirmative.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, ANDHRA PRADESH
1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions.
Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act.
2. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Building Roads Infrastructure & Construction Private Limited (hereinafter referred to as applicant).
3. Brief Facts of the case:
M/s. Building Roads Infrastructure & Construction Private Limited (applicant) is an unregistered dealer expecting a contract for construction, erection, commissioning, widening of roads and completion of bridges for road transportation for use of general public. They act as a subcontractor to the main contractor who was awarded contract by NHAI to construction, erection, commissioning, widening of roads and completion of bridges and NHAI 16 (old NH 5) in the state of Andhra Pradesh. The execution of work takes place only In Andhra Pradesh.
4. Questions raised before the authority:
1. What is the classification of the ‘works contract’ services pertaining to construction, erection, commissioning and completion of ‘Bridges and Roads’ provided by the applicant as a subcontractor to the Contractors who have been awarded the construction contract pertaining to construction/widening of roads by the Government Entities such as National Highway Authority of India?
2. Clarification for rate of tax chargeable on the outward supplies i.e„ on the RA bills raised on main contractor.
3. Whether eligible to claim input tax credit on inward supply of the following goods, JCB, Road Roller, Grader, Hydra Crane, Transit Mixer, Generator, Excavator and Sensor Paver
5. Applicant’s Interpretation of Law and Facts
1. The classification and rates applicable on supply of service are provided in Notification No.11/2017- Central Tax (Rate) Dt.28.06.2017.
2. Serial No. 3 of Notification No. 11/2017 provided for rate of GST on construction services. The activity of the applicant falls under entry at Serial No.3 (iv) of Notification No.11/2017 which provides as under:
