Page 187 - GSTL_6th August 2020_Vol 39_Part 1

2020 ] IN RE : WOODKRAFT INDIA LIMITED 113
2.9 As regard GST claim of Rs. 39,00,139/- of the applicant, O.E.C. in its
report observed that; “The contractor has made claim toward GST of
Rs. 39,00,139/- being GST on Final Bill No. 22 submitted on 22-6-2018. The claim
arose on account of payment of GST by the contractor in the month of June, 2018
while raising their final Bill No. 22 for work carried out in the year 2016, before
the introduction of GST from 1-7-2017. ONGC rejected the claim of GST and in-
stead paid service tax on installation portion, since the work was performed pri-
or to implementation of GST. In this context O.E.C. directed both parties to get
opinion from their respective legal group on the correct stand being both the par-
ties sticking to their original point of view. In view of the stalemate, O.E.C. di-
rected that determination order from GST authority should be obtained based on
representation by M/s. Woodkraft India Ltd., which should incorporate the view
point of ONGC, on the subject matter. M/s. Woodkraft India Ltd., accordingly
submitted their draft to ONGC who have also incorporated their view, O.E.C.
recommends that final determination from GST authority be implemented by
both parties. O.E.C. to be kept appraised of final outcome.”
2.10 Hence applicant has filed subject application.
2.11 According to ONGC, as per Section 142(11)(b) of CGST Act, the
levy of tax under GST would inter alia, not apply on services to the extent it was
leviable under service tax law and services were completed in pre-GST period
and therefore, the applicant should have issued invoice and paid tax as per Rule
3 of point of taxation rule. Further even if invoice was not issued timely, as per
rule 3, the service tax would become payable on the date of completion of ser-
vices and GST would not apply. ONGC service tax amount to the applicant rely-
ing on the transitional provision U/s. 142(11)(b) which read as under.
“Section 142(11) b) : Notwithstanding anything contained in Section 13 no
tax shall be payable on the services under this Act to the extent tax was lev-
iable on the said services under Chapter V of Financial Act, 1994”.
1 2.11 The applicant contended before O.E.C. that, invoice is pertaining
to upward revision in price and therefore in view of Section 142(2)(a) of CGST
Act, it is outward supply under GST law and liable to tax under CGST & MGST
Act. Section 142(2)(a) of CGST Act provide that in respect of on-going contract, if
there is upward revision in supply of goods or services, then such registered per-
son should issue supplementary invoice or debit note and it should be deemed as
outward supply under GST law.
2.12 Applicant has treated impugned contract as works contract under
MVAT Act and paid taxes accordingly at composition rate under Section 42(3) of
MVAT Act. Under GST law works contract supply is deemed as supply of ser-
vices in view of Schedule II(6(a)) of CGST Act and therefore provision Section 13
of CGST Act, regarding time of supply would be applicable.
“Section 13 of CGST Act :
Time of supply of services. - (1) The liability to pay tax on services shall
arise at the lime of supply; as determined in accordance with the provision
of this section.
(2) The time of supply of services shall be the earliest of the following
dates namely :

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1 Paragraph number as per official text.
GST LAW TIMES  6th August 2020  187