The Rajasthan Authority of Advance Ruling (AAR) has held that the 18% GST is liable for the supply of precast manholes using steel and cement.
The bench comprising two judges, Umesh Kumar Garg and Mahesh Kumar Gowla has noted that precast manholes and rises are movable property. So, the supply of precast manholes and rises is considered a supply of goods and not a supply of services based on the analysis.
The petitioner, M/s Natani Precast LLP, has been in the manufacturing and supplying of precast manholes and rises to various government and non-government bodies. Inputs, raw materials, and consumables are required for the supply of precast manholes and their manufacturing.
The petitioner requested an early decision on the matter of whether the supply of precast manholes is a supply of goods or services and the GST rate leviable on it.
Another issue raised was whether the price the petitioner planned to charge M/s Larsen & Toubro Ltd., the recipient, for the provision of precast manholes would be considered transaction value under Section 15(1) of the CGST.
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The value of the supply of goods is referred to as the transaction value in Section 15(1) of the CGST Act, 2017, which makes this clear. Also, the price paid or due for the supply of products, services, or both has been described as transaction value under Section 15(1) of the Act. The price, which shows the transaction value, yet is dependent on two factors. Firstly, there is no relation between the supplier and the beneficiary. Second, supply is solely decided by the price.
The AAR ruled that the price to be levied from the recipient, M/s Larsen & Toubro Ltd., by the petitioner for the supply of precast manhole shall not be transaction value as per Section 15(1) and Section15(2) of the CGST, and that material that is to be made freely available by the applicant and is outside the applicant’s scope of the supply of precast manhole shall form part of the transaction value for the purpose of tax levies.
|Applicant Name||M/s Natani Precast|
|Advance Ruling No||RAJ/AAR/2022-23/26|
|GSTIN of the applicant||Un-Registered|
|Applicant||Sh, Yash Dhadda, CA & Miss Shaifali Bang|
|Rajasthan GST AAR||Read Order|