The Maharashtra Authority of Advance Ruling (AAR) ruled that 12% GST was subjected to pay on the composite supply of works contract for the tunnel construction. The petitioner is the owner of Kapil Sons, is registered under the GST regime and has an operation of drilling and blasting works at various sites using Industrial explosives and other materials.
The petitioner seeks for the advance ruling on the problem that the operations performed by the petitioner would come under the goods or services or the composite supply of works contract and whether the activity is counted as the Composite Supply of works contract for Construction of tunnel under Entry 3(iv) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 taxable at the rate of 12%.
The two judges consist of Rajiv Magoo and T.R.Ramnani mentioned that the impugned activity or supply performed through the petitioner according to the subject work order obtained from M/s NECL is “drilling and blasting including all tools, materials, explosive vans, and others. complete for approach roads and Tunnel Works”.
As we secured that the impugned activity functioned out through the petitioner would be classified as the composite supply of works contract under GST Act towards the tunnel construction we find that the given supply would undergo beneath the Entry 3(iv) of Notification No. 11/2017-CT (Rate) dated 28.06.2017, the Order read.
AAR also mentioned that the impugned activity performed through the means of the petitioner is the composite supply of works contract towards the tunnel construction and undergoes beneath Entry 3(iv) of Notification No. 11/2017-CT (Rate) on 28.06.2017. The concerning things about the choices and the compliances furnished through the petitioner along with the council are acknowledged to conclude on the decision.
