Classification of service— In the instant case, the applicant has filed an application seeking advance ruling on:-
i. What is rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of Central Goods Services Act, 2017 (the Act), undertaken by the supplier (applicant) i.e., whether the GST rate 18% or 12% is to be charged by the supplier?
2. If the GST rate 18% (9% CGST + 9% SGST) as prescribed in serial no.3, against heading no.9954 (construction services), specified Notification No. 11/2017-Cental Tax (Rate) dated 28th June 2017, is the rate applicable to the nature of works contract undertaken by the applicant, kindly clarify the following related aspects also:
The Notification No. 11/2017- Central Tax (Rate) dated 28th June 2017 has been amended by:-
a. Notification No. 20/2017- Central Tax (Rate), dated 22nd August, 2017.
b. Notification No. 24/2017- Central Tax (Rate), dated 21st September, 2017.
Wherein the GST rate of 12% (6% CGST + 6% SGST) has been notified in respect of works contract as defined in clause (119) of Section 2 of the Act.
If so, whether the amendment through Notification No. 20/2017 and 24/2017 will be effective from the date of Notification No. 11/2017 and whether it would be in order for the applicant (supplier) to charge GST at the rate of 12% (6% CGST + 6% SGST) or is the GST rate 18% (9% CGST+ 9% SGST) applicable to the of nature of work contract undertaken by the applicant?
Held that— i. The rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of Central goods and Services Act, 2017 is 18% (9% CGST+9% SGST) till 28/06/2017 as stipulated under Notification No.11/2017-Central Tax (Rate) and is 12% (6% CGST+6% SGST) thereafter, with effect from 22/08/2017.
ii. The amendment to Notification no. No. 11/2017-Central Tax (Rate) dated-28/06/2017, made vide Notification No. 20/2017-Central Tax (Rate) dated-22nd August, 2017 and Notification No. 24/2017-Central Tax (Rate) dated 21st September, 2017 is effective with effect from 22/08/2017 and 21/09/2017 respectively and not from the date of Notification No. 11/2017-Central Tax (Rate) dated 28/06/2017.