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The applicable rate of GST on work agreement entered into with the APSPDCL which is mentioned in the Annexure II will be 18% GST and not the concessional rate of 12% GST.

Levy of GST— The applicant seeks advance ruling on the following;

1. Whether APSPDCL is a Government authority/ Government Entity or not?

2. What is the applicable rate of GST on work agreement entered into with the APSPDCL which is mentioned in the Annexure II?

Broad Scope of work:

“System improvement project for erection of 2 Nos.33/11KV Indoor Sub-Stations and their connected lines at Nellore Town on semi turnkey basis under IPDS.

3. Under which Notification the work would fall, for discharging the GST liability?

4. Whether the value of materials recovered from our RA bills issued on cost recovery basis by APSPDCL is liable to tax under RCM as per Notification No.13/2017-Central Tax Rate dated 28.06.2017 or not ?

Held that— The Applicant is not entitled for the benefit of concessional rate of GST @12% (6% under Central tax and 6% State tax) in terms of Notification No.24/2017-Central Tax (Rate) dated:21.09.2017 read with Notification No.31/2017-Central Tax (Rate) dated:13.10.2017.

The applicable rate of tax is 18% (9% under Central tax and 9% State tax) for the services referred by the Applicant as per entry no. (ii) of S.No.3 of the table of Notification No.11/2017- Central Tax (Rate), Dated: 28th June 2017.

The value of materials recovered on cost recovery basis by the Contractee from the R.A. bills issued by the applicant is includible in the taxable value of supply in terms of Section 15 (2) (b) of the CGST Act,2017.—Gvs Projects (P) Ltd., In Re… [2019] 08 TAXLOK.COM 113 (AAR-AP)