In re M/s. Kababhai Popatbhai Savalia (Shreeji Earth Movers (GST AAR Gujarat)
GST @18% payable on services provided by sub-sub-contractor to sub-contractor to main contractor pertaining to irrigation, construction
The AAR, Gujarat in the matter of M/S. Kababhai Popatbhai Savalia (Shreeji Earth Movers) [Advance Ruling No. GUJ/GAAR/R/43/2021 dated August 11, 2021] held that, GST is payable on services provided by sub-sub-contractor to sub-contractor pertaining to irrigation, construction, maintenance works to irrigation department @ 18%.
Facts:
M/S. Kababhai Popatbhai Savalia (Shreeji Earth Movers) (“the Applicant”) is engaged in providing works contract service directly to sub-contractors who execute the contract with the main contractor for original contract work with the Irrigation Department (State of Gujarat).
The Government Irrigation Division awarded work contract to main Contractor M/s JSIW for EPC of a pumping station. Subsequently, the main contractor awarded the work to sub-contractor M/s Radhe Construction, who awarded the said work to the Applicant, who is now a sub-sub-contractor.
Issue:
What is the applicable rate of tax the liability on services provided by the Applicant to the main contractor pertaining to the irrigation, construction and maintenance works to the Irrigation Department, State of Gujarat?
Held:
The AAR, Gujarat in Advance Ruling No. GUJ/GAAR/R/43/2021 dated August 11, 2021 held as under:
