Earthwork for mining development taxable @5%, constitutes composite supply of works contract

Last updated: 06 April 2021

Court :
AAR Haryana

Brief :
The Hon'ble AAR Haryana in M/s. KSC Buildcon Private Limited [Advance Ruling No. HAR/HAAR/R/2019-20/26 decided on August 28, 2020] observed that major part of the contract involves earthwork (more than 75%) provided to a Government Entity. Hence, the said work order qualifies for the benefit of Serial No. 3(vii) of the Notification No. 11/2017-Central Tax (Rate), dated June 26, 2017 ('Services Rate Notification') as amended by Notification No. 31/2017-Central Tax (Rate), dated October 13, 2017 ('NN 31/2017- CTR') issued under Central Goods and Services Tax Act, 2017 ('CGST Act') being composite supply of works contract as defined in Section 2(119) of the CGST Act. Therefore, GST @5% will be applicable.

Citation :
Advance Ruling No. HAR/HAAR/R/2019-20/26 decided on August 28, 2020