Authority for Advance Ruling —– Works Contract -- Supply of Site Preparation Service-- The applicant is engaged in providing works contract services. The applicant was registered under the erstwhile tax regime and was discharging service tax on works contract services. The applicant has been awarded a sub-contract for earthwork in relation to construction of access controlled Nagpur-Mumbai Super Communication Expressway (Maharashtra Samruddhi Mahamarg). M/s Sadbhav Engineering Limited was awarded the contract for such construction as principal contractor. The SEL awarded the sub-contract to M/s Potaliya Enterprises and who in turn sub-let the work to the applicant on same terms and conditions. The applicant sought an advance ruling as to whether the said transaction shall be treated as supply of service as composite supply of works contract as defined under clause 2(119) of the Act and under entry number 3(iv) of the Notification No 11/2017-CT (Rate) and is taxable at the rate of 12%.
Held that:- The Hon’ble Authority for Advance Ruling held that the activity carried out does not involve supply of goods and the said activity does not fall under either Composite Supply or Mixed Supply. There is no involvement of transfer of property in goods, hence cannot be classified under Works Contract Services. The activity carried out is a supply of Site Preparation Service wherein he will do Excavation in soil, hard rock excavation, embankment, sub-grading, shoulder formation etc. and said service classifiable under 995432 of Notification No.11/2017-CT (Rate) and attracts GST @ 18%.—Ashok Kumar Choudhary, In Re…  16 TAXLOK.COM 106 (AAR-Rajasthan)