Supply by Project Implementing Agency to the State Govt. Department is required to issue tax invoice on the contract value

Last updated: 23 January 2023
Quick Summary
The West Bengal Authority for Advance Ruling (AAR) has ruled that Project Implementing Agencies (PIAs), even when supplying services to State Government Departments without adding value, are required to issue tax invoices based on the contract value determined by the department. This ruling clarifies that two separate supplies occur: one from the contractor to the PIA, and another from the PIA to the government department.

Court :
AAR, West Bengal

Brief :
The AAR, West Bengal in the matter of M/s West Bengal Agro Industries Corporation Limited [Advance Ruling No. WBAAR 15 of 2022 dated December 22, 2022] has ruled that assessee acting as Project Implementing Agency, making supplies to the State Government Department is required to issue tax invoice on the contract value as determined by the Department in spite of the fact that there is no value addition in the supply. 

Citation :
Advance Ruling No. WBAAR 15 of 2022 dated December 22, 2022

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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Bimal Jain
Published in GST
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