What is the GST rate applicable on Service of Work Contract provided for the period prior to 25.01.2018?

This ruling addresses the applicable GST rate for work contract services provided by M/s. Kunal Structure India Private Limited for the construction of Deendayal Upadhyay Govt. Medical College, Rajkot, specifically for the period before 25.01.2018. The applicant sought clarification on the tax classification and rate applicable to their services under the GST regime. The ruling clarifies the GST implications for such contracts entered into prior to the specified date.

GUJARAT AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX
D/5, RAJYA KAR BHAVAN, ASHRAM ROAD,
AHMEDABAD – 380 009.

ADVANCE RULING NO. GUJ/GAAR/R/06/2021
(IN APPLICATION NO. Advance Ruling/SGST&CGST/2019/AR/07)
Date: 20.01.2021

Name and address of the
applicant
: M/s. Kunal Structure India Private
Limited.
15th Floor, B-Wing, Mondeal Heights,
Beside Novotel Hotel, S.G. Highway,
Ahmedabad-380015

GSTIN of the applicant 24AACCK7952Q1ZW

Date of application : 31.01.2019

Clause(s) of Section 97(2) of
CGST / GGST Act, 2017, under
which the question(s) raised.
: (b) applicability of a notification issued
under the provisions of this Act;

Date of Personal Hearing : 23.12.2020(Through online hearing)

Present for the applicant : Shri Jigar Shah

M/s. Kunal Structure (India) Pvt. Ltd., 15th Floor, B-Wing, Mondeal Heights, Besides Novotel Hotel, S. G. Highway Ahmedabad-380015 is a privatelimited company registered under the provisions of Companies Act, 1956 andhaving a GSTIN: 24AACCK7952Q1ZW, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the GGST Act.

2. M/s. Kunal Structure (India) Pvt. Ltd. entered into a contract forconstruction of Deendayal Upadhyay Govt. Medical College, Rajkot with M/s.HLL Infra Tech Service (HITES) Ltd. which is a Govt. of India Enterprise. M/s.HITES as the executive Agency of Ministry of Health & Welfare, Govt. of India, New Delhi floated a tender for the said work under the Pradhan Mantri Swasthya Suraksha Yojna, Phase-III (PMSSY-III).

3. The applicant submitted that they were granted the Letter of Award on08.06.2016. The scope of work included construction of multi storied buildingincluding water supply, sanitary and plumbing, comprehensive Fire Fighting/ Protection System, Internal & External Electrification, HVAC works, Lifts, WTP, STP, ETP, CCTV and Security System, Solar Panel, PA System, EPABX/ Communication System, LAN System, site development works such as Internal Road + Path & site leveling, sewer and storm water drainage work etc.

4. The applicant submitted that with the advent of GST with effect from01.07.2017, the services provided by the applicant are classifiable under heading No. 9954 (Construction service) as per the Scheme of classification of service annexed to the Notification No. 11/2017-CT (Rate) dated 28.06.2017. The relevant portion of the Notification is reproduced below :

To know more in details find the attachment file