Levy of GST—Reverse charge mechanism—In the instant application question placed before authority is that—
Whether they are required to pay GST under reverse charge in terms of Notification No. 13/2017 dated 28.06.2017 while making payment to PWD, Uttrakhand for construction of road;
What is the time of supply when advance payment is released to PWD, Uttrakhand;
Whether the amount deposited with Central Fund i.e. Uttranchal CAMPA and reimbursed by MEA considering as part cost of the road is liable for GST.
In the instant case, M/s. NHPC is providing services to Central Government i.e. Ministry of External Affairs and will attract GST @ 12% but by virtue off Notification No. 12/2017 -Central Tax (Rate) dated 28th June, 2017 (as amended time to time), the supply of service in question, as discussed above, is exempted, thus sub-contracting of the said work contract to PWD Govt. of Uttarakhand is also exempted.
In view of the above we observe that the said activity comes under the purview of exempted category as discussed supra, therefore, question of payment of GST under reverse charge in terms of Notification No. 13/2017 -Central Tax (Rate) dated 28.06.2017 does not arise.
Since their activity is a exempted service, issues of time of supply and applicability of GST on reimbursement lost its relevancy. Accordingly we hold that the no provisions of GST are applicable on said issues.
Ruling— No GST is applicable on the activity of the applicant since the same falls under exempted services in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended time to time).
On the issues of time of supply and applicability of GST on reimbursement, no provisions of GST is applicable on said issues as supply of service in question falls under exempted services.
[AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND] 5 TAXLOK.COM 014 (AAR-UTTARAKHAND)