GST
TRT-2025-
AAAR Maharashtra
Date:-07-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 07 February 2023
Parties: Sterlite Technologies Limited vs. The Maharashtra Appellate Authority for Advance Rulings
Facts –
- The Appellant, Sterlite Technologies Limited received a purchase order from BSNL subject to "Procurement, Supply, Installation, Implementation, and Maintenance support for Indian Navy on a turnkey basis".
- The Appellant had filed for advance rulings and agreed with the observations of AAR that the supply rendered by them to BSNL is in nature of Composite Supply of ‘works contract’ and covers under entry no. 3(vi) (a) which attracts GST@12%. Meanwhile, the notification regarding the rate of tax was amended as compared to the previous orders.
- Effective 01 January 2022 the concessional rate of 12% for specific works contract services provided to Government authority and Government entity including the subject Entry 3(vi)(a)) have been withdrawn.
- When the appellant preferred for afresh application for an advance ruling, the authority ruled that the activities undertaken by the appellant would fall under residual entry 3(xii) and attract GST@18%. Hence, the appellant is aggrieved by the ruling given and filed this appeal for the interim period 01 April 2019 to 31 December 2021.
Issue –
- What is the actual rate of tax applicable for the activities undertaken by the appellant when the service is provided to a government authority or entity?
Order –
- The authorities observed that the only dispute to be decided is whether the said composite supply of works contract is covered under Entry No. 3(vi)(a) of Notification No. 11 /2017-Central Tax (Rate) dated 28.06.2017 (as amended) or not. The first ruling has concluded that all the conditions prescribed implicitly by Entry No. 3(vi)(a) of the Notification No.l 1/2017- Central Tax (Rate) dated 28.06.2017, as amended, are satisfied by the applicant except one. viz. that the contract should be by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of a civil structure or any other original works. Whereas, second ruling concluded that it is accepted by the appellant as appeal was not filed against it.
- The supplies rendered by the appellant to BSNL are in the nature of Composite Supply or works contract.
- Further, Bharat Sanchar Nigam Limited (BSNL) is a 100% Govt. of India-owned Public Sector Undertaking. Central Government holds 100% equity in BSNL. Thus, BSNL qualifies to be held as Government Entity for the purpose of Entry No. 3(vi) (a).
- The supply is held as falling under entry at serial number 3(vi) (a) and is taxable at 12% GST, till 31 December 2021 and @18% thereafter.
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