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The works executed by the applicant in this case included design, manufacture, test, deliver, install, complete and commission facilities for conversion of existing LT Net Work into High Voltage Distribution System and the applicable rate of tax is 18%GST on the services rendered by the applicant.

Classification of service— In the instant case, applicant seeks advance ruling on the following—
The applicant seeks advance ruling on the following by referring the Notification No.12/2017-Central Tax (Rate), dated 28.06.2017 as amended by Notification No. 14/2018-Central Tax (Rate), dated 26.07.2018 inserting a new entry 10A;-

1) As APSPDCL, being a registered dealer under GST alone is eligible for exemption, as per the description in the G.O. that "Services supplied by Electricity Distribution Utilities.

2) Whether the benefit of exemption is also applicable to the Applicant being the contractor executing works to APSPDCL.

3) GST now paying is on composite supply of material and service under Service code of 995423. Whether the G.O. extends the exemption both for supply of material as well as service or limited only to service.

4) Whether the applicant is entitled to claim ITC on inward supplies of material and services for use in the execution of works to APSPDCL, if the applicant is entitled for exemption from payment of GST on execution of works to APSPDCL, in view of the above notification.

5) If the ITC is Eligible, what is the process to get the refund of particular ITC.

Held that—
The Applicant is not entitled for the benefit of NIL rate of GST under SI No 10A of Notification no. 12/2017-Central Tax (Rate), dated 28.06.2017, amended by notification no. 14/2018-Central Tax (Rate), dated 26.07.2018 for the stated works executed. The applicable rate of tax is 18% for the services referred by the Applicant.

Since the works undertaken are classifiable under works contract service, segregation or vivisection will not arise. However, as the said exemption is not applicable to the said works contract, this query and also the queries on entitlement of ITC on the inward supplies, and refund of ITC in the event of the applicant is entitled for exemption from payment of GST, have lost their relevance.—Shirdi Sai Electricals Limited, In Re… [2019] 08 TAXLOK.COM 112 (AAR-AP)

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