Ruling over GST rate of “Services provided under sub-contract to contractor”

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M V Infra Services Pvt Ltd

The applicant is engaged in provision of composite works contract services of erection, foundation, electrical works & painting of communication towers and their They are expected to get sub contract work, of imparting training of soft skill development to Engineers, ITI students, Building and other construction workers, from M/s Adityaa Call Centre Private Limited, Bengaluru, who are the main contractor exclusively engaged in skill development training & are likely to get the main contract work.

The issue raised here is , What is the rate of tax applicable on services provided under subcontract to main contractor, who in turn provides to M/s Maharashtra State Skill Development Society (MSSDS), in respect of training of Building and other construction workers (skill development training) and admissibility of S.No. 69 and S.No. 72 of the notification 12/2017 Central Tax (Rate) New Delhi, dated 28th June, 2017.

In this matter , the authority of Advance Ruling-Karnataka ruled that,”The rate of 18% GST is applicable on services to be provided under subcontract to main contractor, who in turn provides to M/ s Maharashtra State Skill Development Society (MSSDS), in respect of training of Building and other construction workers (skill development training) and the S.No. 69 or S.No. 72 of the notification 12/2017- Central Tax (Rate) New Delhi, dated 28th June, 2017 are not applicable to the applicant”.

The details of the case can be read here : Case file

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