The Authority for Advance Rulings (AAR), Uttarakhand has held that construction of shaheed dwaf fall under the definition of supply of works contract service and GST is applicable for the same.
Garhwal Mandal Vikas Nigam Limited (GMVN Ltd.) is an undertaking of the Government of Uttarakhand which was to promote a steady and sustained growth phase of the travel and tourism sector in Uttarakhand by making the destinations more accessible, and more attractive with many facilities and amenities for the tourists in the Uttarakhand State.
The applicant undertakes activities of restoration and repair works of wayside amenities, tourist rest houses, tourist bus stands and development. The applicant received Grant from the Directorate of Culture; Government of Uttarakhand for the construction of “Shaheed Dwaf at Banjarawala, Dehradun and a Grant from the Department of Social Justice & Empowerment, Government of India for the construction of “Creation of barrier-free environment for PWDs and tourist rest houses in various district of Uttarakhand State.
It was observed that the work allocated to the applicant namely “construction of ‘Shaheed Dwaf at Banjarawala, Dehradun” and “construction of ‘Creation of barrier-free environment for PWDs and tourist rest houses in various districts of Uttarakhand State’, involves civil construction work viz. construction, repairs, etc. and falls under the definition of works contract service.
It was observed that by the Notification No. 32/2017-CT(Rate) dated 13.10.2017, an amendment had been made in the exemption Notification No. 12/2017-CT(Rate) to exempt Supply of service by a Government Entity to Central Government, State Government’ Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received in the form of grants.
Shri Anurag Mishra and Shri Rameshvar Meena, Authority members have ruled that exemption from payment of GST is available for the work of ‘Shaheed Dwar’ at Banjarawala, Dehradun and construction of ‘Creation of barrier-free environment for PWDs and tourist rest houses in various district of Uttarakhand State’.
Sh. Amrit Aswal, Chartered Accountant appeared for the applicant and Mrs Preeti Manral, Deputy Commissioner appeared for the respondent.
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