Authority for Advance Ruling —GST on work of Electrification and or Construction -- The applicant submitted that the work of Electrification and or Construction (Erection, installation and commissioning) of Electric Substations/ Increase in the capacity of Electric Substations etc. are being undertaken through M/s Uttarakhand Power Corporation Ltd. (UPCL) (a Government of Uttarakhand undertaking) and M/s Power Transmission Corporation of Uttarakhand Limited (PITCUL) (a Government of Uttarakhand undertaking) and both of these entities are not eligible to avail the ITC of the GST paid by them. The Applicant sought an advance ruling as to whether double charging of GST as mentioned in the draft estimate (s) submitted by PITCUL/UPCL in respect of contract involving supply of equipment/ machinery & erection, installation & commissioning services with civil work is correct as per the present GST regime.

Held that:- The Hon’ble Authority for Advance Ruling ruled that the component of GST as mentioned in the draft estimate (s) submitted by M/s PITCUL and M/s UPCL in respect of contract involving supply of equipment/ machinery & erection, installation & commissioning services with civil work, is the cost for them and is one of the many components which constitutes the transaction value for the supply in question and is the price actually payable (transaction value) for the said supply of goods & services and hence is in consonance to the provisions of the Act.