Case Law Details
In re PPS Builders Private Limited (GST AAR Uttar Pradesh)
Get clarity on GST rates for contracts pre & post-notification (No. 03/2022-Central Tax). AAR ruling for PPS Builders Pvt Ltd. 12% or 18%? Find out!
Introduction: The Authority for Advance Ruling (AAR), Uttar Pradesh, recently addressed a crucial question related to the Goods and Services Tax (GST) rate applicable to contracts executed before a specific notification. This case involves M/s PPS Builders Private Limited, a civil construction company, and its contract with Aligarh Smart City Limited.
Background: M/s PPS Builders Private Limited, with its registered office in Bulandshahar, Uttar Pradesh, sought an advance ruling under Section 97 of the CGST Act, 2017, and UPGST Act, 2017. The company primarily engages in civil construction projects, particularly with government departments. The specific contract in question pertains to the “Redevelopment of Carriageway, foothpath, vending zone covering ROW within ABD area of Aligarh Smart City (CW-23) on EPC mode (Package-1) at Aligarh.” The contract was executed on 27th December 2021.
Key Question: The crucial question posed by the applicant was whether the company should charge GST at 12% or 18% for contracts executed before the notification (No. 03/2022-Central Tax (Rate) dated 13.07.2022) became effective on 18-07-2022.
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