The Uttarakhand Authority of Advance Ruling (AAR) including Anurag Mishra and Rameshvar Meena directed that no GST would be subjected to be paid on the work of ‘Shaheed Dwar’ at Banjarawala, Dehradun.
The petitioner, Garhwal Mandal Vikas Nigam Limited, is an undertaking of the Government of Uttarakhand. The petitioner is obtaining the consideration for the execution of several projects via the government in the form of grants. The grants are being used through the method of procurement of the goods or services via contractors for the implementation of projects.
The petitioner seeks an advance ruling on the problem of whether the GST is to be levied upon the activities performed towards the execution of different construction, repair, renovation, addition, and alteration projects by GMVN Ltd.
The additional issue was whether the supply of any services through GMVN ltd. to the central government, state government, Local Authority, or Governmental Authority towards which consideration is obtained in the form of grants gets GST exemptions.
AAR sees that GST exemption is available when the consideration obtained is in the form of the grants and would be used for the intended purpose. The litmus test will be the character of the consideration and if it gets entitled to grant then the advantage beneath GST exemption beneath the provision of the notification no 12/2017-CT (Rate) dated 28.06.2017 would be available.
AAR revealed that the words in the letters of the Secretary, Uttarakhand Government and Department of Empowerment of Persons with Disabilities (Divyangjan), Ministry of Social Justice and Empowerment, GOI made that the consideration is in the form of grants.
AAR specified that “Exemption from payment of GST is available for the work of “Shaheed Dwar” at Banjarawala, Dehradun and the construction of “Creation of barrier-free environment for PWDs and tourist rest houses in various districts of Uttarakhand State,”
