GST is leviable on sub-contract received from NBCC to construct building in Maldives: AAAR

Case Details: Appellate Authority for Advance Ruling, Telangana Sri Avantika Contracts (I) Ltd. In re - [2023] 146 taxmann.com 186 (AAAR-TELANGANA)

Judiciary and Counsel Details

• • Neetu Prasad & B.V. Siva Naga Kumari, Member

Facts of the Case

The National Building Construction Corporation (NBCC) was entrusted by Government of India to construct Building in Maldives in terms of MoU signed between two Governments. Thereafter, the applicant was awarded construction sub-contract by NBCC to be supplier of works contract service. It filed an application for advance ruling to determine taxability of work contract services provided by it.

AAAR Held

The Authority for Advance Ruling (AAR) held that NBCC would be the recipient of service and the place of supply shall be the location of recipient. The applicant filed appeal against the order. The Appellate Authority for Advance Ruling observed that NBCC would be the recipient of services as consideration agreed to be paid by NBCC. As per provisions of Section 12(3) of IGST Act, 2017, the place of supply would be location of recipient i.e. Delhi even if location of immovable property is outside India. Therefore, it was held that the sub-contract of works contract services received by the applicant would be taxable under GST.