The Karnataka Authority of Advance Ruling (AAR) ruled that 12% GST on service of supply, erection, commissioning and installation of wastewater pretreatment plants.
The applicant, M/s. Arvind Envisol Limited submitted that they are engaged in providing end-to-end solutions for water treatment, industrial waste-water treatment, sewage treatment zero liquid discharge solutions, on engineering and procurement construction key basis, by setting up effluent treatment plant (ETP), sewage treatment plant (STP), Packaged STP (PSTP), and Zero Liquid Discharge Plant (ZLD). The applicant also provides services in the nature of operation and maintenance of such plants.
The applicant submitted that M/s Karnataka Power Corporation Limited (hereinafter referred as KPCL) has awarded a contract to the applicant for supply, erection, commissioning and installation of a wastewater treatment plant (ZLD plant) followed by its operation and maintenance (O&M) for a period of 5 years. The applicant has to carry out the work as detailed in the letter of award issued by the KPCL.
The applicant has sought the advance ruling on the issue whether the service of supply, erection, commissioning and installation of wastewater pretreatment plant followed by operation and maintenance of such plant attracts rate 12% of GST in terms of notification No. 11/2017 Central Tax (rate) Dated June 28, 2017.
The coram of Dr.M.P.Ravi Prasad and Mashood Ur rehman Farooqui ruled that service of supply, erection, commissioning and installation of waste water pretreatment plant (ZLD plant) and the services of Operation and Maintenance (O&M) of the said plant together is composite supply of works contract classified under SAC 9954 and is liable to 6% CGST and 6% KGST in terms of entry No.3(üi) of the Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 as amended by Notification No. 20/2017-Central Tax (Rate) dated August 22, 2017 and Notification No. 31/2017-Central Tax (Rate) dated October 13, 2017.
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