Case Law Details
In re Dredging And Desiltation Company Private Limited (GST AAR West Bengal)
Introduction: The article delves into a recent GST AAR (Goods and Services Tax Advance Ruling) related to the provision of services for the removal of hump (silt/earth/manure/sludge) by dredging in Najafgarh Drain. Specifically awarded by the Irrigation and Flood Control Department, Government of Delhi, the central question is whether this service falls under the exemption category outlined in Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
Detailed Analysis:
1. Contract Overview: The applicant has secured a work order from the Government of Delhi for dredging in Najafgarh Drain. The scope of work involves desilting, removal of materials, and environmental disposal. Notably, the contract primarily constitutes dredging and earthwork excavation, categorized as pure service work with material costs below 5% of the total order value.
2. Key Questions Raised: The applicant seeks clarity on whether the Irrigation and Flood Control Department of the Government of Delhi falls under the Union Territory. Additionally, the article explores the applicability of specific GST notifications and the corresponding tax rate for the mentioned services.
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