In re Soma-Mohite Joint Venture (GST AAR Maharashtra)
Question: – 1. Whether the said Contract is covered under SI NO -3A , Chapter No 99 as per Notification No 2/2018 -Central Tax (Rate) dated 25/01/2018, w.e.f 25/01/2018 ?
Answer:- Answered in the negative.
Question: – 2. Whether the said contract is covered under the term “Earth Work” and therefore covered under SI No – Chapter No. 9954 as per Notification NO. 31/2017 -Central Tax (Rate) dated 13/10/2017?
Answer :- Answered in the negative.
Question: -3. If we are covered under SL No. 3 chapter No. 9954 as per Notification No.31/2017 – Central Tax (Rate) dated 13/10/2017, w.e.f. 13/10/2017 then what is the meaning of “Earthwork”?
Answer :- In view of answers to question no. 2, this question is not answered.
AAAR Order- Tunnel construction & related work falls under earth work & eligible for concessional GST rate
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] by M/s SOMA-MOHITE JOINT VENTURE , the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the said Contract is covered under SI NO -3A , Chapter No 99 as per Notification No 2/2018 -Central Tax (Rate) dated 25/01/2018, w.e.f 25/01/2018 ?
2. Whether the said contract is covered under the term “Earth Work” and therefore covered under SI No – Chapter No. 9954 as per Notification NO. 31/2017 – Central Tax (Rate) dated 13/10/2017?
3. If we are covered under SL No.3 chapter No. 9954 as per Notification No.31/2017 – Central Tax (Rate) dated 13/10/2017, w.e.f. 13/10/2017 then what is the meaning of “Earthwork”?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to “GST Act” would means CGST Act / MGST Act.
3. FACTS AND CONTENTION – AS PER THE APPLICANT
Statement of relevant facts having a bearing on the question(s) raised:
M/S. Soma Mohite Joint Venture (Referred to as JV) registered under Goods and Service Tax Act, 2017 having GST registration No. 27AAEAS1739F1Z1 and registered office at 3, Siddhivinayank Society. Soma Heights, Karve Road, Kothrud, Pune. 411038 is engaged in the business of Construction of infrastructure projects. The said IV was formed on 27 December, 2008 to undertake construction of tunnel and its allied works for Nira-Bhima Link No. 5 of taluka indapur, Dist. Pune under krishna Bhima Stabilisabon Project awarded by Godavari Marathwada Irrigation Development Corporation, Aurangabad.
The Said JV consists of two members, viz.
1) M/s. Soma Enterprises Ltd.
2) M/s DM Corporation Pvt.Ltd (Formerly known as Mohite & Mohite Engineers & Contractors Pvt. Ltd) The IV was formed to get the work and to share it amongst the members of JV. Accordingly M/s.Soma Enterprises Ltd, Pune and M/S. D M Corporation Pvt.Ltd (Formerly known as Mohite & Mohite Engineers and contractors), Kolhapur are executing the work in the Patio 70:30 proportion
The work order is consisting of Earth Work such as Excavation for Tunnel, removing of excavated stuff, providing steel support, rock bolting, reinforcement, fixing of chain link, cement concerting etc. wherein total earth work is approximately 92.66% as per below mentioned table,
