Exemption provided to main contractors cannot be extended to subcontractors automatically on par basis
Rate of tax (service)- In the instant case, the submissions made by the appellant have already been looked into by the AAR and there is nothing new which has been brought to persuade the AAAR.
The case laws and arguments pertaining to Service Tax law are specific to that law as there were provisions catering specifically to subcontractors whereas in GST the provisions are very restricted. Exemption benefit are not available to sub-contractors ex facie since those entries under 12/2017 specific to subcontractors occur only at two sl. Nos. that too pertaining to works contract.
They restrict the exemption to only three sub clauses of sl. No. 3, performed by the main contractor and NOT extended to all the activities performed as a part of works contract. This itself proves that the purpose of exemption notification unless specifically provided, cannot be extended to subcontractors automatically on par with service suppliers (main contractors).
Held that- Appellant is a totally different entity than from concessionaires in as much as they are all separately incorporated and separately registered with GST and they are distinct persons as per GST Act. So, on the basis of holding equity, they cannot claim to be on par with the concessionaire, who otherwise too are ineligible for the exemption, being the provider of composite supply of goods and services to GCC anyway.
we do not find any reason to interfere with the order of the Advance Ruling Authority in this matter. The subject appeal is disposed of accordingly.
Exemption provided to main contractors cannot be extended to subcontractors automatically on par basis
Rate of tax (service)- In the instant case, the submissions made by the appellant have already been looked into by the AAR and there is nothing new which has been brought to persuade the AAAR.
The case laws and arguments pertaining to Service Tax law are specific to that law as there were provisions catering specifically to subcontractors whereas in GST the provisions are very restricted. Exemption benefit are not available to sub-contractors ex facie since those entries under 12/2017 specific to subcontractors occur only at two sl. Nos. that too pertaining to works contract.
They restrict the exemption to only three sub clauses of sl. No. 3, performed by the main contractor and NOT extended to all the activities performed as a part of works contract. This itself proves that the purpose of exemption notification unless specifically provided, cannot be extended to subcontractors automatically on par with service suppliers (main contractors).
Held that- Appellant is a totally different entity than from concessionaires in as much as they are all separately incorporated and separately registered with GST and they are distinct persons as per GST Act. So, on the basis of holding equity, they cannot claim to be on par with the concessionaire, who otherwise too are ineligible for the exemption, being the provider of composite supply of goods and services to GCC anyway.
we do not find any reason to interfere with the order of the Advance Ruling Authority in this matter. The subject appeal is disposed of accordingly.