Page 190 - GSTL_6th August 2020_Vol 39_Part 1

116 GST LAW TIMES [ Vol. 39
5.3 From the perusal of activity undertaken by applicant as discussed
earlier in this order in detail, it is observed that M/s. Woodkraft India Ltd. was
holding registration under MVAT Act and Service Tax Law in pre-GST period
and is also currently registered under GST Act. The applicant had undertaken
the work of civil and interior in respect of M/s. Oil & Natural Gas Corporation
Ltd. issued to them vide Order No. MR/PO/4BP/BK/52 2013, dated 1-10-2013.
This work was completed upto 31-1-2016 i.e. during pre-GST period. The tax in-
voice (R.A. Bill No. 22) in respect of this completed work was raised by applicant
on 25-6-2018 i.e. during GST period along with levy of GST @ 18% whereas as
per the provisions of Under Rule 4A of the erstwhile Service Tax Rules, 1994, it
was compulsory for a service tax assessee to issue a bill or invoice within 14 days
from the date on which the taxable service was completed or the date on which
the payment was received for the service, whichever came first. Applicant has
contended that, the said 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 provides that in respect of on-going contract, if there is upward revision in
supply of goods or services, then such registered person should issue supple-
mentary invoice or debit note and it should be deemed as outward supply under
GST law.
5.4 From the submissions made by the applicant we observe that the
amount mentioned in RA Bill No. 22 is the amount payable by ONGC out of the
contract amount, in respect of the contract under which work was completed
before the GST regime. Hence, since the said invoice has been raised in pursu-
ance of the contract value, the provisions of Section 142(2)(a) of CGST Act, is not
applicable in respect of RA Bill No. 22. We find that in respect of RA Bill No. 22,
dated 25-6-2018, the applicant had already undertaken and completed the work
in the service tax regime and the activities undertaken by the applicant (for
which RA Bill No. 22 was issued), does not pertain to the supply of goods or ser-
vices or both being undertaken or proposed to be undertaken by the applicant.
This amount has been received by them as per the original contract value and
therefore the said amount cannot be treated as an increase in the contract value.
1 5.7 We now discuss the relevant provisions of Section 142, which deals
with the Transitional Provisions, as submitted by the applicant.
5.7.1 ”Section 142(2)(a) - where, in pursuance of a contract entered prior to
the appointed day, the price of any goods or services or both is revised upwards on or after
the appointed day, the registered person who had removed or provided such goods or ser-
vices or both shall issue to the recipient a supplementary invoice or debit note, containing
such particulars as may be prescribed, within thirty days of such price revision and for
the purposes of this Act such supplementary invoice or debit note shall be deemed to have
been issued in respect of an outward supply made under the Act;”
“Section 142(10) - save as otherwise provided in this Chapter, the goods or ser-
vices or both supplied on or after the appointed day in pursuance of a contract entered
into prior to the appointed day shall be liable to tax under the provisions of this Act”.
“Section 142(11)(a) - notwithstanding anything container in Section 12, no tax
shall be payable on goods under this Act to the extent the tax was leviable on the said
goods under the Value Added Tax Act of the State.

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1 Paragraph number as per official text.
GST LAW TIMES  6th August 2020  190