GST rate services provided
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Case Title |
GRB Dairy foods (P) Ltd |
|
Court |
Madras AAAR |
|
Honorable Judges |
Justice M.V.S. Choudary & Justice K. Phanindra Reddy |
|
Citation |
2022 (2) GSTPanacea 368 HC Madras AAAR/04/2022 (AR) |
|
Judgement Date |
23-February-2022 |
|
Council for Petitioner |
S. Muthuvenkatraman |
|
Council for Respondent |
Not applicable |
|
In favour of |
Revenue |
|
Section |
CBIC Circular No. 92/11/2019-GST, dated 7-3-2019 and Section 16 and 17 of the CGST Act, 2017 |
The Authority for Advance Ruling, M.P. Ravi Prasad and T. Kiran Reddy, has held that AAR held that activities of recipient would be commercial in nature for fixed tariff and 18% GST would be applicable.
GST rate services provided
Facts of the Case
The appellant was engaged in construction activities including retrofitting, restoration etc. of civil structures predominantly for Government, Public Sector Undertakings and Government entities. It filed an application for advance ruling to determine taxability of works contract services provided to Government Entity for carrying out retrofitting work for strengthening office building against seismic and wind effect. The Authority for Advance Ruling held that 18% GST would be levied as per SL. No. 3(xii) of Notification 11/2017 CT (Rate), dated 28-6-2017. It filed appeal against the order.
GST rate services provided
Court Held
The Appellate Authority for Advance Ruling observed that the appellant would be providing work contract services of retrofitting work for strengthening against seismic and wind effect and the recipient would be a Government Entity engaged in Generation and Distribution of Electricity against fixed Tariff. However, the benefit of concessional GST rate shall not be available for works supplied to Government entity, in respect of a Civil Structure or any other original works meant predominantly for commerce, industry or any other business or profession. Therefore, the ruling of Authority for Advance Ruling was upheld as activities of recipient would be commercial in nature for fixed tariff and 18% GST would be applicable.
GST rate services provided
Analysis of the Judgement
By noticing the above order we analyse that 8% GST leviable on services provided for carrying out retrofitting works.
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