The Rajasthan Authority for Advance Ruling (AAR), held that the Services of Construction and Recarpeting of Commercial Complex Road to Rajasthan Housing Board attracts 18% GST.
The Applicant, Om Prakash Agarwal, Prop. M/s Mittal Trading Company, has been awarded a contract from Rajasthan State Industrial Development & Investment Corporation through vide Work order for Development of Commercial Complex at Industrial Area Agro Food Park — II, Ranpur, Kota.
Rajasthan State Industrial Development & Investment Corporation is a body constituted under RIICO Industrial Areas (Prevention of Unauthorized Development and Encroachment) Act, 1999 as a special vehicle for undertaking of various government projects as envisaged by the Government of Rajasthan, but it’s not Government itself.
The applicant contended that as per description of the services mentioned at Sl. No. 3 (vi)(a) of the Notification No. — 11/2017 — Central Tax Rate dated 28th June, 2017 furthermore amended vide notification no. 15/2021 — Central Tax (Rate) dt. 18.11.2021, GST rate applicable for the following services is at 12%.
The Two-member Bench consisting of Umesh Kumar Garg, Joint Commissioner and Mahendra Singh Kavia, Joint Commissioner observed that “We further observe that GST rates of Works contract involving construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of following rendered to Government or Local authority increased to 18% vide Notification No. 03/2022- Central Tax (Rate) I Dated: 13th July, 2022.”
The Bench also noted that applicant filed their application before the Rajasthan Authority for Advance Ruling (RAAR) on 02.06.2022 i.e. much later from the execution of contract dated 08.09.2021 and that the applicant is registered with GST authorities and well aware about the type of supply its notification, circular, discharging his GST tax liability and submitting his GST returns in accordance to them with effect from execution of contract.
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