Levy of GST— In the instant case, AAR on account of difference of opinion on the issue - of taxability on sub-contractor has been examined in view of points raised by the both members. There is no dispute with regard to the construction of road being the taxable works contract service and exemption is available to Public Works Department, Uttarakhand and M/s NliPC Ltd. The point which is to be determined by us is as given below:-

Whether the exemption available to PWD Uttarakhand and M/s NHPC Ld. can be extended to the sub contractor also?

Present case pertains to the GST period therefore we have to confine to the notification issued under CGST/SGST Act. With regard to the services rendered to the Government, initially notification no 11/2017 Central fax (Rate) dated 28-06-2017 was issued by which contractor & sub contractor were made liable to pay GST 18%. Further Notification no 24/2017 CT (Rate) dated 21 September 2017 was issued making govt. contractors liable to pay GST 12%.

This authority can't refer to the pre GST circular no 147/16/2011-ST dated 21-10-2011 and Para 29(h) of the Mega exemption notification no. 25/2012-ST dated 20-06-2012 to exempt sub contractor, as Service Tax is now repealed and cannot be applied on the supply of services pertaining to GST regime. Thus the taxability on the sub contractor in such cases have to be decided in view of the notification issued under CGST/SGST Act.

Held that— We hold that the works contract services for the road construction provided by the sub contractor to PWD, Uttarakhand, who in turn is providing works contract services of road construction to M/s NHPC Ltd is not exempted from GST.