The Rajasthan Authority for Advance Ruling (AAR), observed that the Tender of Work Contract under Chief Minister Jan Awas Yojana to Rajasthan Housing Board (RHB) after 13.07.2022 attracts 18% GST.
The Applicant that M/s Bhori Lal Mohan Lal, is engaged in construction services, undertook the work contract tendered byRajasthan Housing Board on 25.01.2021 and the applicant undertook the work under the scheme ofChief Minister Jan AwasYojna 2015 programme having nexus with the ‘Housing for all’ initiativeunder Pradhan Mantri AwasYojna of the Government of India.
The applicant had an agreement with the Rajasthan Housing board to construction for Economic Weaker Section. As agreed in the contract RHB was levying and charging the applicable GST rate i.e. 6 % each CGST and SGST on the bill amount passed for the applicant prior to the amendment dated18.11.2021 in central tax rate.
The GST rates of Works contract involving construction, erection,commissioning, installation, completion, fitting out, repair, maintenance, renovation, oralteration of following rendered to Government or Local authority increased to 18% videNotification No. 03/2022- Central Tax (Rate) Dated: 13th July, 2022.
Moreover, on-going through the facts of the case, it can be observed that applicant filed theirapplication before the Rajasthan Authority for Advance Ruling (RAAR) on 03.07.2022 i.e.much later from the execution of contract under CMJAY from dated 25.01.2021.
Hence it can be assumed that the applicant is well aware about the type of supply its notification, circular,discharging his GST tax liability and submitting his GST returns in accordance to them wefexecution of contract.
The Two- Member Bench comprising Umesh Kumar Garg, Joint Commissioner and Mahendra Singh Kavia, Additional Commissioner observed that “We observe that in this case applicant is providing service to Rajasthan Housing Board and in light of above discussion, we observe, applicant will be liable to pay GST @18% in light of the Notification No. 03/2022- Central Tax (Rate) Dated: 13th July, 2022.”
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