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File No.REV03-12038(31 )/3/2019-GST SEC-CCT

GOVERNMENTOF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

From To
Sri. J. Syamala Rao, LA.S., The Director or Works Accounts
Chief Commissioner of State Tax, "C" Block, 3rd floor,
Andhra Pradesh, Anjaneya Towers, Ibrahimpatna tn,
Edupugallu, Vijayawada. Vijayaw ada.

CCT's Ref.No. GST 123/2019, Dt: 103/2019

Sub: - AP GST Act, 2017 - GUidelines for deductions and deposits of T[ is

by the DDO under GST - Value of supply in case of work bills
- discussed by the officers present and proposal submitted
for confirmation.

Ref:- 1) G.O.Ms.No. 58 Finance (WR-I) Dept, Dt: 08.05.2018.

2) G.O.Ms.No. 482 Revenue (CT-II) Dept, Dt: 24.09.2018.
3)Director of Works Accounts Lr. No.DWA/ AP/IBM/Sn.II/ A.2/201 ~-
19/104, Dt: 12.03.2019.

*****
In the reference 3rd cited, the Director of Works Account requested thi
office to clarify the value of the supply for the purpose of calculating GST and
TDS on GST on a given example of computation. It was submitted that for e n
purpose of calculating value of supply items viz., tender percentage, price
adjustment, seigniorage charges, national academy of construction are to be
added to the bill abstract value. The value so arrived is to be taken as the val e
of supply for calculating GST, and the GST is to be added to the value of the I ill.
It is also submitted that, as per the latest instructions, agreements and
estimates, labour cess is not being added to the value of the work, and it is
being recovered directly from the contracting agencies in such cases labour c ss
is not part of the value of the work. In case of old estimates, and agreemen
conditions labour cess is being added to the value of the work and recovered
from the contracting agencies. It is requested to clarify that in such case ( a
per the old agreement) whether the labour cess is part of value of work or no .
The workinq example is furnished as under ..
Value of su_pp~for the ournose of a work bill as _per latest estimates
A Value of work done ( as per bill abstract) 10000~
B Tender_percentaqe amount +/-_i_ +4.5%) 450C
C Price Adjustment amount +/- (5000) 5001:
D Seiqniora_g_e amount 350C
E NAC amount (1 % on A+B+C+Q) 11-=
F Total value of supply ( for the purpose of GST calculation
I) A+B+C+D+E 11311:
G Add: GST calculated as a % on F ( 12%) 13574
Ga CGST 6787
Gb SGST 6787
Gc IGST
H lTotal value of work ( F+G) 12668.1
Deductions:
 File No.REV03-12038(31)/3/2019-GST SEC-CCT

All the other recoveries as exists which include

I seigniorage, LC, NAC, IT etc (D+E+ Labour Cess 1% on 700
F, IT 2% on F (if any other recoveries)
J 226
Ja
Jb 1131
Jc 1131
K 1174 9

In this regard the relavent provisions of the GST Act are as follows,
As per the Sec,15(2) of AP GST Act, 2017",which reads as under.
(2) The value of supply shall include,-
a, any taxes, duties, cesses, fees and charges levied under any la
for the time being in force other than this Act, the Central Goo
and Services Tax Act, 2017 and the Goods and Services Tax
(Compensation to States) Act, 2017 if charged separately by th
supplier;

From the above definition it is clear that the Tender percentage,

price adjustment, sceigniorage charges, Labour cess and NAC all fo
part of the value of supply if they are al ready i ncluded in the
consideration payable.
Further, as per the GST Act the SGST,CGST, IGST, and GST
compensation cess if they charged separately do not form part of the value f
supply,
This is for information.

Chief Commissioner of State Tax,

ENDT NO.DWANJD/SN.II/A.2/2019-201
Copy communicated to all the JDWAs/PAOs/APAOs and all the Engineers-in-Chief for favour of infor ation and

necessary action. This has got the approval of the Government vide UO Note No.FMUOSD(WR.I)/7

vide Computer NO.868937 dated.7.5.2019

Dir~~dw~cin:
1117
AP, Ibrahimpatnam, Vijayaw a
To:

All the JDWAs/PAOs/APAOs and all the Engineers-in-Chief

Signature
 GOV7RNMENT OF ANDHRA PRADESH
ROADS & BUILDINGS DEPARTMENT

0/0 the Engineer-in-Chief (R&B),

Admn, NH & CRF, Vijayawada.

Memo No. 24961/MC/DEE/AEE2/2003 Dt: 13-05-2019

Sub: R&B Dept. - AP GST Act, 2017 - Guidelines for deductions and deposits
of TDS by the DDO under GST - Communicated - Reg.

Ref: 1) CCT's Ref. No.GST/23/2019, Dt:13-03-2019 of the Chief

Commissioner of State Tax, Vijayawada addressed to the Director of
Works Accounts, Ibrahimpatnam, Vijayawada.
2) Endt No. DWA/VJD/SN.II/A.2/2019-20/7, Dt: 10-05-2019 of the
Director of Works Accounts, Ibrahimpatnam, Vijayawada.

***********

A copy of Guidelines for deductions and deposits of TDS by the DDO under

GST issued vide CCT's Ref. No.GST/23/2019, Dt:13-03-2019 of the Chief

Commissioner of State Tax, Vijayawada along with Endorsement

Dt:10-05-2019 of the Director of Works Accounts, Ibrahimpatnam,

Vijayawada is here with communicated to all the Superintending

Engineers of R&B Department for information and necessary action.

End: Copy of references cited.

for Engineer-in-Chief (R&B),

Admn, NH & CRF
„x6\y
To
All the Superintending Engineer (R&B)
Copy to all the EE (R&P) Divisions (By mail)
Copy to all Heads of R&B Department for favour of information (By mail)