Concessional rate of GST i.e. 12% shall not apply to the sub-contractor who is sub-contracted from a sub-contractor of the main contractor. Applicant has to discharge 18% tax rate
Rate of tax (service)- The applicant has sought advance ruling in respect of the following question:-
Whether concessional rate of GST shall apply to the sub-contractor who is sub-contracted from a sub-contractor of the main contractor, the main contractor being provider of works contract to a Government entity?
The applicant contends that activity of the electrical subcontractor works and infrastructure works carried out by him is on immovable property of M/s. Karnataka Neeravari Nigam Ltd which is a government entity and the same is awarded by the first sub-contractor M/s. Shaaz Electricals who is in turn awarded the said work by the main contractor M/s. Ocean Construction (India) Pvt. Ltd. Hence, according to the applicant, the work is liable to tax at the rate of 12% as per Notification (tax rate) 01/2018 dated 25-01-2018.
Held that- it is observed that the activity under consideration undertaken by the applicant is not covered under entry no.3(ix) or under entry 3(iii) or under entry 3(vi)of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 (as amended) and hence applicant is not liable to charge concessional rate of GST@ 12% on the said supply, and the applicant has to discharge tax rate CGST @ 9% and KGST @ 9% each under the provision of the said Act.
Concessional rate of GST i.e. 12% shall not apply to the sub-contractor who is sub-contracted from a sub-contractor of the main contractor. Applicant has to discharge 18% tax rate
Rate of tax (service)- The applicant has sought advance ruling in respect of the following question:-
Whether concessional rate of GST shall apply to the sub-contractor who is sub-contracted from a sub-contractor of the main contractor, the main contractor being provider of works contract to a Government entity?
The applicant contends that activity of the electrical subcontractor works and infrastructure works carried out by him is on immovable property of M/s. Karnataka Neeravari Nigam Ltd which is a government entity and the same is awarded by the first sub-contractor M/s. Shaaz Electricals who is in turn awarded the said work by the main contractor M/s. Ocean Construction (India) Pvt. Ltd. Hence, according to the applicant, the work is liable to tax at the rate of 12% as per Notification (tax rate) 01/2018 dated 25-01-2018.
Held that- it is observed that the activity under consideration undertaken by the applicant is not covered under entry no.3(ix) or under entry 3(iii) or under entry 3(vi)of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 (as amended) and hence applicant is not liable to charge concessional rate of GST@ 12% on the said supply, and the applicant has to discharge tax rate CGST @ 9% and KGST @ 9% each under the provision of the said Act.