The services of construction of the R&R Colony supplied by the Applicant would be taxed under the Works Contract Service. The Applicant will be eligible to avail Input Tax Credit of tax paid to the sub-contractor on works contract services for construction of R&R colony and utilize same for providing/ supply of Works Contract service only. Further in terms of Section 17(5)(c) of the CGST Act, 2017, the said credit should not be utilized towards the payment of GST liability with regards to any other service including Mining Service.
Classification of service— In the instant case, the applicant has entered into Agreement with Andhra Pradesh Mineral Development Corporation Limited in terms of which, it has been appointed as a Mine Operator for planning, engineering, financing, construction, development, operation and maintenance of Suliyari coal mine and subsequent delivery of coal to the Owner.
The main issue is to decide whether the service of construction of R&R colony supplied by the Appellant is covered under the Works contract service or under Mining Service as composite supply and the credit of ITC on the tax paid to sub-contractor under Works contract service for construction of R& R Colony is eligible or not under Section 17(5)( c) of the CGST Act, 2017.
In this case the construction of R&R colony is to be done from the sub-contractor by the Applicant and the invoice of the said construction was raised by the sub-contractor to the Applicant under Works contract service and thereafter the Applicant reimburse the same amount from the APMDC by raising the invoice to APMDC.
in this case as per the submission of the applicant, satisfied the condition for construction of Building and transfer of property in goods is involved inasmuch as the title of the steel, cement, etc. which goes in the construction of the building i.e. R&R colony is transferred to APMDC, hence, we find that the construction of R&R colony is covers under the definition of Works Contract Service and GST is leviable on the said service under the Works contract service.
in this case the applicant is receiving the Work contract services i.e. construction of R&R colony from the sub-contractor in the course of further supply of the same as Works contractor to APMDC, hence the restriction of Section 17(5)(C) shall not applicable to the Applicant. Hence, we find that in respect of the construction of RR colony, the applicant is eligible to take ITC of tax paid to sub-contractor under works contract service which will be used for providing the same to the APMDC.
Held that— The services of construction of the R&R Colony supplied by the Applicant would be taxed under the Works Contract Service.
the Applicant will be eligible to avail Input Tax Credit of tax paid to the sub-contractor on works contract services for construction of R&R colony and utilize same for providing/ supply of Works Contract service only. Further in terms of Section 17(5)(c) of the CGST Act, 2017, the said credit should not be utilized towards the payment of GST liability with regards to any other service including Mining Service.
The services of construction of the R&R Colony supplied by the Applicant would be taxed under the Works Contract Service. The Applicant will be eligible to avail Input Tax Credit of tax paid to the sub-contractor on works contract services for construction of R&R colony and utilize same for providing/ supply of Works Contract service only. Further in terms of Section 17(5)(c) of the CGST Act, 2017, the said credit should not be utilized towards the payment of GST liability with regards to any other service including Mining Service.
Classification of service— In the instant case, the applicant has entered into Agreement with Andhra Pradesh Mineral Development Corporation Limited in terms of which, it has been appointed as a Mine Operator for planning, engineering, financing, construction, development, operation and maintenance of Suliyari coal mine and subsequent delivery of coal to the Owner.
The main issue is to decide whether the service of construction of R&R colony supplied by the Appellant is covered under the Works contract service or under Mining Service as composite supply and the credit of ITC on the tax paid to sub-contractor under Works contract service for construction of R& R Colony is eligible or not under Section 17(5)( c) of the CGST Act, 2017.
In this case the construction of R&R colony is to be done from the sub-contractor by the Applicant and the invoice of the said construction was raised by the sub-contractor to the Applicant under Works contract service and thereafter the Applicant reimburse the same amount from the APMDC by raising the invoice to APMDC.
in this case as per the submission of the applicant, satisfied the condition for construction of Building and transfer of property in goods is involved inasmuch as the title of the steel, cement, etc. which goes in the construction of the building i.e. R&R colony is transferred to APMDC, hence, we find that the construction of R&R colony is covers under the definition of Works Contract Service and GST is leviable on the said service under the Works contract service.
in this case the applicant is receiving the Work contract services i.e. construction of R&R colony from the sub-contractor in the course of further supply of the same as Works contractor to APMDC, hence the restriction of Section 17(5)(C) shall not applicable to the Applicant. Hence, we find that in respect of the construction of RR colony, the applicant is eligible to take ITC of tax paid to sub-contractor under works contract service which will be used for providing the same to the APMDC.
Held that— The services of construction of the R&R Colony supplied by the Applicant would be taxed under the Works Contract Service.
the Applicant will be eligible to avail Input Tax Credit of tax paid to the sub-contractor on works contract services for construction of R&R colony and utilize same for providing/ supply of Works Contract service only. Further in terms of Section 17(5)(c) of the CGST Act, 2017, the said credit should not be utilized towards the payment of GST liability with regards to any other service including Mining Service.