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WB AAR: Service of Removing the Dredging Hump is Not Subjected to GST

WB GST AAR's Order for Dredging and Desiltation Company Private Limited

In the case of In Re. Dredging and Desiltation Company (P.) (Ltd.) [Order No. 25/WBAAR/2023-24 on December 20, 2023] the West Bengal AAR, governed that, no tax is chargeable toward the supply of service of removal of hump by dredging to the Government as the supply of aforementioned service is waived from imposing the GST vide Sl. No. 3A of Notification No. 09/2017-Integrated Tax (Rate) dated June 28, 2017 (“the Service Rate Exemption Notification”).

Points:

With the Irrigation and Flood Control Department, Government of Delhi (“the Government”) Dredging and Desiltation Company (P.) (Ltd.) (“the Applicant”) has entered into a contract for the removal of the hump (slit/earth/manure/sludge etc.) by dredging. The aforementioned contract includes a supply of service of dredging and excavation which is a pristine service work and the material cost transferred and consumed for execution and completion of works contract is less than 5% of the total work value.

An application for advance ruling has been filed by the applicant on whether the Irrigation and Flood Control Department would arrive within the purview of Union Territory and thus, the supply of aforementioned service to the Irrigation and Flood Control Department would be waived from levy of GST vide Sl. No. 3A of Service Rate Exemption Notification.

Problem:

Whether supply of service of removal of hump by dredging to the Government waived from GST imposition?

Had:

The AAR, West Bengal in the case of Order No. 25/WBAAR/2023-24 held as under:

The applicable extract of the Service Rate Tax Exemption Notification

Sl. No. 3A Notification of Service Rate Exemption

Name of the ApplicantDredging and Desiltation Company Private
Limited
GSTIN19AABCD0790Q1Z5
Date20.12.2023
Case NumberWBAAR 25 of 2023
ApplicantMr. Sumit Nishania
WB GST AARRead Order
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