Breif Issue :

Facts  & Issue Of The Case :

NHPC Ltd. Is a covered under definition of “Government Entity” in as much as the promoter of NHPC Ltd is the president of India and it is under the control of the ministry of power (Govt. of India). They are seeking advance ruling for the following reasons :

A. Whether they are required to pay GST under reverse charge in terms of Notification No. I3l 2O17 dated 28.06,2017 while making payment to PWD, Uttarakhand for construction of road?

B. What is the time of supply when advance payment is released to PWD Uttarakhand?

C. Whether the amount deposited with Central Fund i.e Uttaranchal CAMPA and reimbursed by MEA considering as part cost of the road is liable for GST?

The work allotted to the applicant is related to “construction of road” which involves both supply of goods as well as services but when we go through the notification no. 32/2017 of Central Tax (rate) , we came to know that this kind of service is exempted. The service is received by the Ministry of External Affairs, Govt. of India.  

GST  rate on the work contract is 12% or 5% then sub-contractor is also liable to discharge his GST liability @ 12%  or 5%, Similarly if the contractor is providing an exempt works contract  Service to Government and in such case if works contract is partially or  wholly sub-contracted then the sub-contractor would also be exempt  from payment of GST. The nominee of this entity holds 100% equity shares of the company .