In re TATA Projects Limited – SUCG Consortium (AAR Rajasthan)
Issue- The issue involved in this case is, whether Jaipur Development Authority is covered under the status of Government Authority/ Entity or not? and the nature of Services provided under the contract are covered under Sl.no.3(vi)(a) of notification no. 11/2017-Central Tax (Rate) dt. 28th June 2017 amended with notification no.24/2017-Central Tax (Rate) dated 21.09.2017 and further amended with notification no. 31/2017-Central Tax (Rate) dated 13.10.2017 or not? What is the GST rate applicable on subcontractor leg ?
Held- The Services provided by M/s TPL – SUCG Consortium to Jaipur Development Authority under Contract awarded to them are covered under Notification no. 11/2017 – Central Tax (Rate) dt. 28th June 2017 and GST @12% (i.e. CGST 6% + SGST 6%) is applicable on the services provided under the said contract. This rate is also applicable to the sub-contractor leg under the said contract as inserted in the Notification no. 01/2018 dt. 25th January.
FULL TEXT OF AAR RULING IS AS FOLLOWS:
(A) SUBMISSION OF APPLICANT
1.1. M/s TPL – SUCG Consortium (herein after referred as the applicant also) submitted that, Jaipur Development Authority awarded a Contract to them vide their LOA No. JDA/EE-07/2016/D-662 dated: 04.03.2016 for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur (Rajasthan) Including Area Development on Turnkey Basis, and its Operation & Maintenance (O&M) for a period of 10 Years.
Under the said Contract, the Major works proposed for the Project are as follows.
a) Course Correction/ Strengthening of Amanishah Nallah – River rehabilitation includes ground preparations, lining, embankment works, protection & prevention, and development of other peripheral structures, landscaping, etc.
b) Sewerage Interception, treatment and disposal –
Local residents discharge untreated sewage in to the Nallah. This is proposed to be checked by intercepting the sewage from existing drains/sewer lines lyingwithin 0.5 km of the center of the Nallah. providing limited collection main (along the banks of the Nallah only) and putting up the treatment plant as detailed in later sections for treating such intercepted sewage and discharging treated effluent in to the Nallah.
c) Value Creation and Monetization –
It is also proposed to prepare a comprehensive Business Plan along with land use plan and detailed Master Plan of the precious land areas reclaimed from Nallah sections and other existing land parcels in and around the Nallah. Primary objective of this exercise will be to highlight to the government significant value addition for the city in direct monetary terms and other intrinsic benefits that will accrue from the Nallah improvement works. This plan will act as road map for the Employer to use newly developed assets as per the market needs and value creation through Nallah improvement.
1.2 Scope of the works in Contract:
The basic essence of the project is an enhancement of utility of the Dravyavati River (Amanishah Nallah) which is already existing and operating in its present state. The project scope is primarily the course correction and strengthening the channel for better performance. The present structures on the river i.e. the dams, reservoirs are also operational, and cleaning is being done to restore the storage capacities for which they were designed and constructed. In addition, since the river and its existing dams are already operational as the present sewage from the catchment is being collected and carried by the river and the dams are used for water storage and supplying water to irrigation of nearby agricultural lands.
The Sewage Treatment Plants (STPs) which are to be constructed as part of the sewage treatment. As mentioned above the project focuses on enhancing the workability of the river and its better performance, hence, the need of having clean water in the river was necessary. This required treating the raw sewage, which is presently being deposited in the river. In line with that, laying of pipelines, construction of interception chambers and construction of STPs are the engineering solutions to have the desired clean water in the river.
Project scope is to prepare a Master Plan of the Reclaimed Lands which will indicate the ways through which the commercial value of the land parcels surrounding the Nallah can be increased. The master plan is only a proposal for the development of the lands surrounded the nallah. The actual development of the lands is not the part of this Contract. In accordance, the contractual requirements a detailed Master Plan of Reclaimed Lands of the project has been prepared submitted by us. This plan will act as value creation through Nallah improvement.
2. They further submitted that, Jaipur Development Authority is a body constituted under Jaipur Development Authority Act 1982 (Act. 25) as a statutory vehicle to implement the urban development of Jaipur as envisaged by the Department of Urban Development and Housing. Government of Rajasthan.
