Case Law Details
In re Om Parkash Contractor (GST AAR Haryana)
Q1. Whether applicant’s activities, as briefly mentioned at sl. No. 12(B) above, qualify to be a composite supply of goods and services and exempt from GST under entry No. 3A of Notification No. 12/2017-CT(R), dated 28.06.2017 as amended by Notification No. 2/2018-CT(R), dated 25.01.2018?
Ans 1. As per Serial No. 3A Chapter 99 of the Notification No. 12/2017-CT(R), dated 28.06.2017 as amended by Notification No. 2/2018-CT(R), dated 25.01.2018 under the CGST Act, 2017and the corresponding State Tax notification under HGST Act, 2017, The work carried by the applicant is a Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the State Government by way of an activity in relation to the function entrusted to a Panchayat under article 243G of the Constitution or in relation to the function entrusted to a Municipality under article 243W of the Constitution and thus exempt under GST. Thus, the Serial No. 3A of Notification No. 12/2017-CT(R), dated 28.06.2017 as amended by Notification No. 2/2018-CT(R), dated 25.01.2018 under the CGST Act, 2017 is applicable to the applicant.
Q2. Whether the service recipient, Public Health Department, State of Haryana, is required to deduct TDS under Section 51 of the CGST Act, 2017 given the fact that as per applicant’s version his aforementioned services are exempt from GST under Notification No. 12/2017-CT(R), dated 28.06.2017 as amended Notification No. 2/2018-CT(R), dated 25.01.2018?
Ans. As per the Standard Operating Procedure issued by Law Committee of GST Council on 28.09.2018, if the services ;eceived by deductor from deductee are exempt, then there is no requirement for tax deduction under GST. Therefore, the service recipient being Public Health Department (Deductor), State of Haryana is not required to detect TDS under section 51 of the CGST Act, 2017 as question above clarifies that applicant services are exempt from GST under Notification No. 12/2017-CT(R), dated 28.06.2017 as amended vide Notification No. 2/2018-CT(R), dated 25.01.2018.
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