Home GST 12% GST Rate Applies to Services Provided to Govt Authority Until 31st Dec 2021

12% GST Rate Applies to Services Provided to Govt Authority Until 31st Dec 2021

12% GST Rate Applies to Services Provided to Govt Authority Until 31st Dec 2021
Rajasthan GST AAAR's Order for Lakhlan and Qureshi Construction Co.

The Rajasthan Appellate Authority for Advance Ruling (AAAR) has decided {that a} 12% Items and Service Tax (GST) applies to providers rendered till 31.12.2021 for the Authorities Authority.

The precise matter in query was the GST charge relevant to the work carried out by the applicant (now appellant) for M/s Jaipur Good Metropolis Restricted underneath Bid Reference No. JSCL/ Works/02/2020-21.

The GST charge for the work carried out by the appellant for M/s JSCL underneath Bid Reference No. JSCL/Works/02/2020-21 is eighteen%, divided as 9% CGST and 9% SGST. Initially, sure actions by governmental our bodies had been exempted from being categorized as items or providers as per the Central Tax (Fee) issued on 28.06.2017. Providers tied to Panchayat features underneath Article 243G of the Structure had been particularly exempt.

Later, an modification on 26.07.2018 by way of Notification No. 1612018 – Central Tax (Fee) expanded this exemption to incorporate Union Territories and Municipalities underneath Articles 243W and 243W of the Structure, respectively.

The appellant argued that as per Notification No. 12/2017 Central Tax (Fee) dated twenty eighth June 2017, amended by Notification No. 0212018 – Central Tax (Fee) dated twenty fifth January 2018, providers supplied to governmental entities outlined in Article 243G or 243W of the Structure are exempt from tax.

Due to this fact, the reimbursement from M/s JSCL to the appellant for NOC charges linked to features talked about in Article 243W is topic to nil tax charges, aligning with the provisions within the notifications.

Nevertheless, the Authorities of India, Ministry of Finance, by Notification No. 16/2021- Central Tax (Fee) dated 18.11.2021, has amended Entry No. 3 from 01.01.2022, excluding the phrase “a Governmental Authority or a Authorities Entity.” Therefore, the dispute pertains to the relevant GST charge till 31.12.2021, as from 01.01.2022, the speed has been clarified.

Justice Dinesh Kumar Singh harassed that the evaluation order had clearly laid out the sequence of occasions, together with the petitioner’s failure to conform after being knowledgeable in DRC-01. The court docket had religion within the authority’s correct documentation of details and noticed no grounds to imagine the petitioner’s declare of improper discover service.

In wrapping up the case, Justice Dinesh Kumar Singh dismissed the writ petition however allowed the petitioner the choice to attraction the Deputy Commissioner of State Tax’s order. Moreover, the court docket acknowledged the extension of the attraction deadline till January 31, 2024, following Round No.53/2023.


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