18% GST on Works Contract Tendered by Rajasthan Housing Board under Scheme of CM Jan Awas Yojna

Case Details: Authority for Advance Rulings, Rajasthan Bhori Lal Mohan Lal, In re - [2023] 149 taxmann.com 171 (AAR-RAJASTHAN)

Judiciary and Counsel Details

• • Umesh Kumar Garg & Mahendra Singh Kavia, Member
  • Kamlesh Sharma for the Applicant.

Facts of the Case

The applicant was engaged in construction services and undertook work contract tendered by Rajasthan Housing Board under scheme of Chief Minister Jan Awas Yojna 2015. It filed an application for advance ruling to determine taxability of work contract under Chief Minister Jan Awas Yojna.

AAR Held

The Authority for Advance Ruling observed that the work contract would be under scheme which would have nexus with ‘Housing for all’ initiative under Pradhan Mantri Awas Yogna of Government of India and the applicant would supply services to Rajasthan Housing Board (RHB).

As per Notification No. 3/2022- Central Tax (Rate), dated 13-7-2022, GST rates of works contract involving construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation etc. rendered to Government or Local authority would be increased to 18%. Therefore, it was held that services provided by applicant to RHB would attract a rate of 18%.