No exemption from GST on the supply of works contract services by the applicant to Greater Hyderabad Municipal Corporation
Classification of service— In the instant case, the applicant sought Advance Ruling on the following issues:
1. The Classification of supplies made by TS TRANSCO in terms of HSN and applicable rate of tax;
2. The Classification of supplies procure by TS TRANSCO and eligibility to obtain services at reduced rate of 12% as per entry 3(iv) of Notification 11/2017 CTR dated 28 June 2017;
3. Eligibility of TS TRANSCO to avail input tax credit benefit on works contract services when viewed from the restrictions imposed under sub-section (5) of section 17 of the CGST Act, 2017.
It is seen from the submissions made by the applicant that they are making supplies of works contract services under service head 995423 and 995424 i.e., General construction services. It is employing private turnkey contractors on back to back arrangements for the purpose of executing these contracts. The applicant seeks clarification on the rate of tax applicable to the supplies made by it to the principal contractee on one hand and on the other, the rate of tax applicable to the supplies made by the private turnkey contractor to it.
there is a significant involvement of goods in the composite supply of works contract. Therefore this is not a pure service as averred by the applicant and hence not eligible for exemption.
Held that— The works contract service supplied by the applicant are in nature of General Construction service for long distance underground/overland/ submarine pipe lines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works. These works are taxable @9% under CGST & SGST Acts.
No exemption from GST on the supply of works contract services by the applicant to Greater Hyderabad Municipal Corporation
Classification of service— In the instant case, the applicant sought Advance Ruling on the following issues:
1. The Classification of supplies made by TS TRANSCO in terms of HSN and applicable rate of tax;
2. The Classification of supplies procure by TS TRANSCO and eligibility to obtain services at reduced rate of 12% as per entry 3(iv) of Notification 11/2017 CTR dated 28 June 2017;
3. Eligibility of TS TRANSCO to avail input tax credit benefit on works contract services when viewed from the restrictions imposed under sub-section (5) of section 17 of the CGST Act, 2017.
It is seen from the submissions made by the applicant that they are making supplies of works contract services under service head 995423 and 995424 i.e., General construction services. It is employing private turnkey contractors on back to back arrangements for the purpose of executing these contracts. The applicant seeks clarification on the rate of tax applicable to the supplies made by it to the principal contractee on one hand and on the other, the rate of tax applicable to the supplies made by the private turnkey contractor to it.
there is a significant involvement of goods in the composite supply of works contract. Therefore this is not a pure service as averred by the applicant and hence not eligible for exemption.
Held that— The works contract service supplied by the applicant are in nature of General Construction service for long distance underground/overland/ submarine pipe lines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works. These works are taxable @9% under CGST & SGST Acts.