Page 163 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : GUJARAT ENERGY TRANSMISSION CORPN. LTD. 265
17. Also, as the members of appellate authority are differing, Section
101(3) of CGST Act, 2017 shall apply.

_______

2020 (36) G.S.T.L. 265 (A.A.R. - GST - Guj.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri G.C. Jain and R.B. Mankodi, Members
IN RE : GUJARAT ENERGY TRANSMISSION CORPN. LTD.
Advance Ruling No. GUJ/GAAR/R/12/2019, dated 20-8-2019 in Application
No. Advance Ruling/SGST & CGST/2018/AR/5
Valuation (GST) - Inclusions - Value of Construction services and oth-
er charges not includible in value of service for transmission of electricity -
Transmission of Electricity services by Government company exempted under
Serial No. 25 of Notification No. 12/2017-C.T. (Rate) and corresponding State
Notification - Cost of construction/erection of bays/sub-stations, overhead
lines and underground cables and other charges including pro rata charges,
supervision charges, proportionate line charges, registration fees and opera-
tion and maintenance charges, recovered by service provider from consumers -
Though said cost borne by and recovered from consumer, bays/sub-stations,
overhead lines, etc. so constructed/erected vest in the assessee and are its prop-
erty/assets in terms of Gujarat Electricity Regulatory Commission (Terms and
Conditions of Intra-State Open Access) Regulations, 2011 - Serial No. 25 ibid
entry provides exemption from GST only to service of “transmission and dis-
tribution by an electricity transmission or distribution utility” and to the ser-
vices provided by way of construction, erection, commissioning, or installation
of infrastructure for extending electricity distribution network up to premises
of consumers - Exemption under Serial No. 10A of Notification No. 14/2018-
C.T. (Rate) available only to construction, erection, commissioning, or installa-
tion of infrastructure for extending electricity distribution network up to the
tube well of farmer or agriculturalist for agricultural use - Said construc-
tion/erection of “Bays/Sub-Stations, Overhead Lines, Underground cables, etc.
or part thereof” are optional services and one may or may not choose to avail
these additional services - Each service unique, different, not inter dependent
on each other and optional - Construction services to be provided prior to the
supply of ‘Transmission of electricity” and not naturally bundled and sup-
plied in conjunction with each other in the ordinary course of business - It
cannot be construed that same is in conjunction with supply of “Transmission
of electricity” and “composite supply” - Both services to be charged separately
- Value of “Construction Services” and other charges cannot form part of value
of service of “Transmission of Electricity” - Sections 2(30) and 15 of Central
Goods and Services Tax Act, 2017. [paras 6, 7, 8, 9, 10, 11, 11.1, 12.1, 13]
Construction services - Classification and rate of tax - Services by way
of construction, erection, commissioning, or installation of infrastructure for
extending electricity distribution network up to premises of consumers classi-
fiable under HSN Code 9954/9954 23 - Taxable at 9% CGST in terms of Serial
GST LAW TIMES  14th May 2020  163