The applicant is liable to collect and pay GST at the rate of 12 % on the amount received from the Public Works Department as per revised estimate in respect of work namely “Construction of bridge". Hence the turnovers on which the question is raised by the applicant are deemed to be the turnovers under the GST Act and not under the VAT Act.
Authority for Advance Ruling — Construction Services – The applicant is a Class-I PWD Contractor. His tender bid was accepted for construction of bridge. The Applicant sought advance ruling as to whether he is liable to collect and pay GST on amount received from the PWD Department as per revised estimate in respect of said work; whether he is liable to collect and pay GST on amount received from the Executive Engineer, Public Works; whether the PWD Department is liable to pay GST or VAT Tax under Karnataka Value Added Tax Act.
Held that:- The Hon’ble Authority for Advance Ruling held that the applicant is liable to collect and pay GST at the rate of 12 % as per Section 142(2) (a) of the Act on the amount received from the PWD as per revised estimate in respect of work, subject to the condition that the amount is related to price revision of the contract entered prior to the appointed date. The applicant is liable to collect and pay GST on amount received from the Executive Engineer, Public Works, Inland Water Transport Department, Mangalore Division.
The applicant is liable to collect and pay GST at the rate of 12 % on the amount received from the Public Works Department as per revised estimate in respect of work namely “Construction of bridge". Hence the turnovers on which the question is raised by the applicant are deemed to be the turnovers under the GST Act and not under the VAT Act.
Authority for Advance Ruling — Construction Services – The applicant is a Class-I PWD Contractor. His tender bid was accepted for construction of bridge. The Applicant sought advance ruling as to whether he is liable to collect and pay GST on amount received from the PWD Department as per revised estimate in respect of said work; whether he is liable to collect and pay GST on amount received from the Executive Engineer, Public Works; whether the PWD Department is liable to pay GST or VAT Tax under Karnataka Value Added Tax Act.
Held that:- The Hon’ble Authority for Advance Ruling held that the applicant is liable to collect and pay GST at the rate of 12 % as per Section 142(2) (a) of the Act on the amount received from the PWD as per revised estimate in respect of work, subject to the condition that the amount is related to price revision of the contract entered prior to the appointed date. The applicant is liable to collect and pay GST on amount received from the Executive Engineer, Public Works, Inland Water Transport Department, Mangalore Division.