Case Law Details
In re S.P. Singla Constructions Pvt. Ltd. (GST AAR Punjab)
Question: What is the classification of the ‘Works Contract’ services pertaining to construction, erection, commissioning and completion of ‘Bridges’ 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.
Answer: The services pertaining to construction, erection, commissioning and completion of ‘Bridges’ provided by the applicant as a sub-contractor in respect of construction contract pertaining to construction / widening of road by the National Highway Authority of India falls under the scope of Serial No. 3(iv) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 (as amended) and attracts GST @ 12% (CGST 6% + SGST 6%).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, PUNJAB
1. M/s S.P. Singla Constructions Pvt. Ltd. (Applicant) is engaged in the business of construction, erection, commissioning and completion of bridges. The Applicant is situated in the State of Punjab in Sangrur at its premises H No. 4408, Sunami Gate, Sangrur- 148001 and is registered under the Central Goods and Service Tax Act, 2017 (CGST Act) vide GSTIN No 03AAGCS5773B1ZK.
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If subcontractor gets a part of civil construction from a contractor then what will be position of purchase itc ? Subcontractor will have to purchase on his gstin or main contractors gstin while department has deducted 12% whole gst from main contractors bill and it’s deducted from subcontractors bill by main contractor.
The rate of subcontractor is mentioned in clause 3(ix) and 3(x) whereas 3(ix) talks about that the rate for the work described in 3(iii) and 3(vi) shall be 12% but 3(iv) only talks about work done by contractor and subcontractor.It means that other subcontractor will pay gst as mentioned in last one that is 3(xii) which does not cover till 3(xi) will be charged at 18%.Its wrong decision.