Case Law Details
In re Amnex Infotechnologies Pvt. Ltd (GST AAR Gujarat)
What is the rate of GST applicable on Applicant for provision of services provided to Shahjahanpur Nagar Nigam (Local Authority) and what is the correct HSN / SAC code?
We find the subject Contract Agreement, as enumerated in the brief facts, is a Works Contract Agreement, involving supply of goods and services for implementation of the Project. Vide Schedule II(6)(a) CGST Act, Supply of Works Contract shall be treated as a supply of service. We find that the service recipient is Shahjahanpur Nagar Nigam, Uttar Pradesh which is a local authority. Thus, we find the subject Supply is covered vide Sr no 3(vi)(a) of Notification 8/2017-Integrated Tax (R) dated 28-6-17 at Tariff 9954 and liable to 12% IGST rate. We find this Integrated Tax Notification comes into play in subject matter as the supply is Inter State Supply. For this reason, We dismiss M/s Amnex submission to take into account Notification 24/2017- CT(R) dated 21-9-17, as this Notification pertains to Intra state supply.
M/s Amnex has also sought a Ruling on the HSN/ SAC Code of Subject Supply. We note that subject ITMS project is an original works involving both installation, commissioning and maintenance. We find Tariff 9954, as mentioned in previous para, is reflected at the said sr. no 3(vi)(a) of Notification 8/2017-IT(R). We refer to SAC 995468: Other installation services n.e.c. We find the said SAC description encompasses the ITMS project, which is an original works installation and note that SAC 995468 occurs last in the numerical order of the of Tariff subheading 9954. In this backdrop and for the reason that the subject supply is made to a local authority and the rate being 12% IGST as per said sr no 3(vi)(a) to the said Notification and that Tariff 9954 is reflected at the said sr no 3(vi)(a), We find it apt to consider SAC 995468 for the subject works contract, without delving further. Our view on subject SAC is for this specific case and this is not a straightjacket formula for determination of SAC but that each case has to be individually examined in the backdrop of the case’s specific facts. In Conspectus of aforementioned Discussion and findings, we pass the Ruling:
Ruling
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