In re Universal MEP Projects & Engineering Services Limited (GST AAR Odisha)
The GST AAR Odisha addressed whether supplementary invoices for a works contract executed before 18/07/2022 should apply the GST rate of 12% or 18%, following the recent amendment to Notification No. 3/2022-CT (Rate) effective from 18/07/2022. The contract, executed by Universal MEP Projects & Engineering Services Limited for RWSS, involved a price escalation clause leading to the issuance of supplementary invoices. Under the earlier rate of 12% (CGST 6% + SGST 6%), the applicant had invoiced before the amendment. However, due to the amendment, the rate increased to 18% (CGST 9% + SGST 9%). The AAR ruled that the applicable GST rate for the supplementary invoices should be 18% since the services were supplied before the rate change but the invoices were raised after the rate was amended. The decision is based on Section 14 of the CGST Act, which dictates that the rate of tax depends on the occurrence of supply, issuance of invoice, and receipt of payment. The applicant or jurisdictional officer can appeal the ruling to the Odisha State Appellate Authority within 30 days.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, ODISHA
