What shall be the time for raising GST Invoices for Capital Subsidy and Annuity Fee?

This advance ruling clarifies the Goods and Services Tax (GST) implications for M/s Surya Roshni LED Lighting Projects Limited concerning capital subsidies and annuity fees received from the Odisha Government. The ruling addresses whether capital subsidies are subject to GST and, if so, at what rate. It also specifies the GST rate for the remaining 10% of project capital expenditure and the O&M fees paid as an annuity over seven years. Crucially, it defines the correct timing for issuing GST invoices for these payments.

ODISHA AUTHORITY FOR ADvANCE RULING
GOQDS AND SERVICE TAX ( GST)
A VIHAR BL
RAJASWAVIHAR, BHUBANESWAR-751007(ODISHA)
PROCEEDINGS OF THE AUTHORITY FOR ADVANCE RULING
U/S.98 OF THE GOODS AND SERVICE TAX ACT, 2017
Members Present:

1. Sri Gopal Krishna Pati, IRS, Additional Commissioner, Office of the Chief Commissioner, GST, Central Excise & Customs, Bhubaneswar

2. Sri Dillip Satpathy, Special Commissioner of CT&GST Office of the Commissioner, CT&GST, Odisha Banijyakar Bhawan, Cantonment Road,Cuttack-753001-Odisha.

ORDER NO.05/0DISHA-AAR/2020-21/DATED 20lo1 þo11

Subjeet: M/s Surya Roshni LED Lighting Projects Limited, Plot No.111/762, Mouza-Rudrapur, P.O-Pahal, Opp. Highway Honda Showroom, NH-5, Bhubaneswar-752101 (herein after referred to as the Applicant') having a GSTIN 21ABBCS4607C1zo, isa company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the OGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the SGST Act.

1.0 The Applicant having assigned with GSTIN number 21ABBCS4607C1z0 sought for an advance ruling in respect of the following questions

Q1. Whether Capital Subsidy (90 per cent of Projcct Capital Expenditure) received bythe Applicant as per SIOM Agreement and Escrow Agrecment from OdishaGovermment/ULBs for the Green Field Public Stroct Lighting System in the State of Odisha is not liable to GST and if liable to GST, then at what rate of GST?

Q2. What shal be the GST rate for the balance 10% of the Project Capital Expenditureand O&M Fees received as Annuity Fee over the period of 7 years by the Applicant as per SIOM Agreement considering the Sl. No. 3(vi) of the notification No. 11/2017 Central Tax (Rate), dt. 28-06-2017 as amended by Notification No. 31/2017 Central Tax (Rate), dt. 13-10-2017 and corresponding notifications of Odisha State Tax Rate as amended.

Q3. What shall be the time for raising GST Invoices for Capital Subsidy and AnnuityFee (consisting of 10% of Project Capital Expenditure and O&M Fee) payable in 7 years?

To know more in details find the attachment file