Rate of tax (service)— In the instant case, applicant is one of the suppliers of services to M/s M. Venkata Rao Infra Project Pvt. Ltd who are engaged in the activities of construction of Bridges etc. 

The applicant only provides the service of dumping of soil from one place to another and excavation service.

Questions on which the Advance Ruling is sought are as follows—

Q.1 Whether the supply of labour force/work without material by a subcontractor to main contractor, who is engaged in supply of “works contract” service, also falls under “works contract” services?

Q.2 Whether ‘point No. 12’ of the 25th CGT Council Meeting held on 18.01.2018 reducing GST rate from 18% to 12% is applicable also to such subcontractors supplying labour force/work without material to the main contractor who is engaged in supply of “works contract” service?

There is no transfer of property from the applicant to the main contractor (M/s MVR) while performing the work of dumping of soil from one place to other place or while activity of excavation. The applicant is merely performing labour work. Therefore, the activities carried out by the applicant cannot be treated as “works contract”.

Held that— The supply of labour force/work without material by a sub-contractor to main contractor, who is engaged in supply of “works contract” service, does not fall under “works contract” services.

The reduction of GST rate from 18% to 12% is not applicable to such sub-contractors supplying labour force/work without material to the main contractor who is engaged in supply of “works contract” service.