In re Sreedhanya Construction Company (GST AAR Kerala)
In a recent case before the Authority for Advance Ruling, Kerala, M/s. Sreedhanya Construction Company sought clarification on the GST implications for their works contract services to Kerala State Transport Project (KSTP). The company, engaged in constructing roads and bridges, raised concerns over the applicable tax rate under GST.
The applicant argued that understanding KSTP’s status—whether as a Government Authority, Entity, or Department—was crucial for determining the GST rate. They highlighted the uncertainty arising from recent tax rate changes and sought clarity to avoid future tax disputes.
The Authority considered the scope of advance rulings under the CGST Act, emphasizing that while the status of KSTP wasn’t covered, the GST rate applicability for works contracts fell within their purview. They analyzed relevant notifications and amendments, noting the tax rate was initially 12% (CGST 6% + SGST 6%) and later revised to 18% (CGST 9% + SGST 9%) from July 18, 2022.
Based on the ruling, the Authority concluded that works contract services provided by M/s. Sreedhanya Construction Company to KSTP for public infrastructure projects are subject to GST at 12% or 18%, depending on the date of supply.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KERALA
