Tar wee anit ase frors afroect age va Wan de, 7en Pret veer, 7 28 We, ea ‘HWNM-0522~2209450, 7311189228 (0), ¥*et—-up-finc@pmegsy.nic.in wate: 4o4 28 /sMowuodto / wrea—wmt / 2018 Rette:— 06- a¥,2022 : mecrqet aan 3, afterett sifterer, thar, ‘aie Prior far a * anion afar fara, orre—oid), weal, stiet, Axe, verge, wiras, velar wa order | frwa:—werridt ar ase shor + oral A sogwodto & fem F ware Hy welaa, arn onlet fare afew & waters & aie 175 /28/ Howoeio / ara-iim/2018 feria—13 aitter2022 & wr wos Pee (F&A), Tea aver savant Pere Wei, (anier feort Hara, ART WOR) @ Ta WeMI-NRRDA- G021(17)/3/2017-FA erie 12.04.2022 Ye TA HAT-NRRDA-G021(17)/3/2017-FA feria osos201e ar Wat TET ORT oT ae wy fed wer A figaieras } ort ah sforaodo & fara & werd § fed aa Ade S orga & sowwodo FH wer fit ar Hl orter a Te et am ote val & wa A ys: ongay Prera far we & fl] aT TER S ater vat S organ a sowwodto at aw aed EY Pattee wreT we chlogHodio a waite vd fate sad ai Sf aren Ufa we * ye nd fara Pear fate Prafeta a aeael va craze order Bq SFT wara:—sITTT | . rater Ger afar, cheroitgeeng a, oe Prater Farr ed aefer sift fear, SoHo | 2 wafer oper aifteren, cremains get, ate Pair fearr gd mer after FEAT, Gov | Za (ftosto wareaa) feet Friar Scanned with CamScannerLb () “gee-0522-2200450, 7311189220 (0), ¥a-up-fine@pmgsy.nie.In wate: Yar 4 Bar weer are use frore afreewt aye wd arr aa, THM Prrart eeers, ao as, TITG! You /28/soraodto / ura / 2018 Reriw:— 06- Ag,2022 neerqel aanfer aiftreraer far, Reea—wareEs are ew ator F are showTodlo F farses F were HI glez, ara waRtat fara afta & wataa 3 vais 475 / 28 / ThowHOeIO / era-vit/ 2018 Paia—13 atet,2022 ho wer wera Meee F&A), usta oeit Sareea ORT TERA, (oer Rawr area, ART WER) S Ta TANRRDA- G021(17)/3/2017-FA FeAIe 12.04.2022 yd Wa GM-NRRDA-G021(17)/3/2017-FA feat oso62018 aT viet TET TA wT we OY fore we S fb oral at SRowrodio B Rrarrat & wert HRI wa Pred orga GY Aowodo SM awa faa or A arden at A eff act outed wat & wr A pe ovat MA Are wT eH art eROR s atten wal OFFER HY SflowRIOO AH arora at Ee PralhRer wren Te sflogozto wt ain dita weT Waa wt) darrH:—-saTa wad, eB (fo Slo wares) waie_ya fein Sa! afatett—Prafattr or earl wd ore wrfandl Bg BA 1 arate Fer sift, rewcfterarg ea, cites Prefer Rearer ye wer siPeraeT feerrt, BouO | 2 erat aeherr aiftern, cients ger, ctor Rafer feet ad arte afar fart, Gov | Lage (fosto SarATa) fact Praaa Scanned with CamScannersre yd een cet, Ta Pore ees, aa es, THATS | EAUIN-0522—z200450, 7311189228 (0, ¥Aa—up-finc@pmgsy.nic-in ‘nO BAR wee ani ase Pores af rEe wate: (75 /28/Mowrodio/uram/2018—— etiw:— —/3 artes, 2022 ya, om ere oifterett sifteren, stordy, citer Prater far ve aapfer ofteraer fer, Sa FT! Prva—aarrt uM use dor dS oral FW sfoywodo & feared & wears HI BIT Fea (eHOYSONO), asta uniter srmeivaar fort vor, (ari, faoret dara, WT EER) B TA WeN-NRRDA-GO21(17)/3/2017-FA feria 12.04.2022 (oramfa sora) Wer eer TA ‘i@@M-NRRDA-G021(17)/3/2017-FA F&7tia 06.06.2018 (oramftt vera) wr det Tee HA HT we BY fered aA a & ort a showaodio ® Pearcy & ward § RA 7a Pee F aque a sflogwogo Sr wer fa or BH arte Ft RA EI uate Haha wa W owsodo & viet ¥ Prifrr sede far var &— ‘The assessment of subsumed tax shall be submitted by the contractor along with copies of invoice and statement of input taxes duly certified by the Chartered Accountant, It is responsibility of the contractor to furnish correct details of the subsumed taxes”. SRRDAs to ensure that this may be Sbtained from the contractor and duly verified by SRRDA/PIUs. It should be ensured that ITC for inputs purchased for PMGSY project should be applied/caleulated in respect of such project, and not for any other business/project of the contractor. sree ahem ah aH Horny PEAR Aver ore A wR TRATES WTR A S organ & shorwodo Barr wea BPR Fe eerre:—-SHTaTL | + “aap” (dio Slo sarEATa) faca Praise vais va fenie sat safefeae—Preatereret teers ye area ereforél ey HA ; erner Far saraT, fewest, hop Prefer leer Ge afte irae fararT, JowO | 2 cere mehr croren, emeerarg gee, car Prafor fener ed rrr arfraraer fear, GowO | a (foxto sara) fat Priaa eet Scanned with CamScanner‘504/504 NRRDA-G021(17)/3/2017-FA - ence arrsttor sraeigeen Reeoret satett Canin freee Hater, HTH ATT ) ‘National Rural Infrastructure Development Agency (Ministry of Rural Development, Gort. of India) * Flog 15-NBCC Tower, Bhilai Cama Pace, New Delh110066 peggy NRRDA-Go2(17)/3/2017-FA Date: 12.04.2022 To, |The ACS/ Principal Seretary/ Secretary of Nodal Departments of PMGSY/ RCPLWEA of | States/UTs. Subject: Implementation of Goods and Service tax in Works Contracts of PMGSY/ RCPLWEA. Sir/ Madam, ‘leave refer to this office OM No NRRDA-Goas(17)/32017-FA. dated 06.06.2018 (copy attached) con the aforesaid subject whereby comprehensive guidelines to enable the States to calculate the stational tax implication, if any, on account of application of GST regime were circulated. On the esis of information collected in NRIDA from various States/UTs it has been observed that only very few States have reported any additional financial liability on account of implementation of GST in PMGSY works, which leads to a conclusion that there might not be any additional lability on account of GST. Therefore, in this regard, the following guidelines are reiterated to be followed strictly by States/UTs (especially those reporting additional liability for GST) while processing GST related claims /payments. TAs per para A (vii) of NRIDA's circular dated 06:06 2038. “Once the value of work sanctioned \ nd GST taxes are arrived, employer may enter into supplemental agreement with revised agreement value... It may be ensured that the SRRDA's enters into supplemental agreement ‘with revised agreement value before making any additional payment on account of GST. ji. Para A (vi) ofthe circular stipulates that, "The assessment of subsumed tax shall be submitted by the contractor along with copies of invoices and statement of input taxes duly certified by | the Chanered Accountant. Ici responsibility of the contractor to furnish correct deals of the subsumed taxes”. SRRDAS to ensure that this may be obtained from the contractor and duly vetiied by SRRDA/PIUs. Tt should be ensured that ITC for inputs purchased for PMGSY project should be applied/ calculated in respect of such project, and not for any other business/ project of the contractor. ‘Accordingly, the State/UT shall work out the impact of GST forall the works individually for {all categories of works indicated in the OM dated 06.06.2018. Any cost escalation, after adjusting the | project saving that may be required, shall be borne by MoRD and the state in the existing fund sharing pattern of PMGSY, as may be applicable to the state, States/UTS are requested to take action in this matter keeping in mind the above said instructions. Yours sincerely (Dey Director (F&A) Copy to: faye *. PPS10,AS (RD) & DG. NRIDA. Krishi Bhawan, New Delhi, Scanned with CamScannera : NRROA-Go2N(17//3/2017-FA ats eee 7345201 Natlonal Rural Infrastructure Development Agency ny ener FETS ae Ministry of Rural Development, Government of Teas 06 I * @ 1s Nace Tower, S Floor, Bhkali Cama Place, New Delhi a Dated: 06.06.2018, fie no, wanoa-co2s1a7)32017-46 199 20 (377 7 A> To tments of PMGSY (State/UT), Empowered ‘The Principal Secretary/ Secretary of Nodal Depart (NAS) (All State) Officers/CEOs & Chilef Engineers of SRRDAS, General Managers Finance Subject: Implementation of Goods and Service tax- Works Contract Sir/Madam, Government of india has enacted the Goods and Services Act 2017 throughout India wef, 1.07.2017, The GST has subsumed various indirect Taxes of both the Central & State Government, such as Central Excise Duty, Service Tax, Central Sales Tax (CST/ Works Contract Tax (WCT)/ State Value Added Tax (VAT), Additional Custom Duty (CVD) and special Additional Duty (SAD) apart from Entry Tax and Octroi Charges etc. 2. The Standard Bidding Document (SBD) makes provisions about the taxes which directly related to Contract Value. It incorporates that whenever the tax structure is changed during. the ongoing contract and new law comes into force then the contractor has to be refunded the increased amount of taxes, if any and similarly, recovery is to be made from the contractor ifthe taxes have decreased. 3. On request of various States, seeking clarifications of GST and issuance of guidelines for future references, this office in consultation with Integrated Finance Division (IFD) of Ministry of Rural Development (MoRD) has worked out comprehensive guidelines and categorized all the projects under PMGSY into four different categories of A, B,C and D to enable the States to calculate additional tax burden. 4, The adoption and the consequent implication of GST under PMGSY will be on the following categories of works - 1. Works sanctioned, prior to 02.07.2017, under different phases of PMGSY and which are ongoing le. subsisting contracts{ including the delayed projects, beyond the original intended completion date) under various stages of physical and financial progress -(Category A) li, Works sanctioned, after 01.07.2017, under different phases of PMGSY wherein GST hhas not been accounted for in the original proposal/sanction and wherein Tenders have been completed-(Category 8) |i Works sanctioned after 01.07.2017, under different phases of PMGSY wherein GST hhas not been accounted for in the original proposal/Sanetion and for which tender process has not been initiated - (Category C). iv. All new works proposed and yet to be proposed le, works whic . worl ich inthe under PMGSY - (Category D). — 5. Following are the Guidelines suggested to be followed by all SRRDAs — A. Category A L Ths new Goods and Services Tox (GS) lws requ that al ivoees should show the value Of supply and GST separately, and the value of suppl wil therefore, Include nom-cST exe main embedded inthe Input prices, such as taxes on petroleum products, : Scanned with CamScannery {4529/2022/F 8A) i vil vil NRRDA-G021(17)/3/2017-FA ‘The Project components under different major heads (ike Earth, Sand, Aggregates, tee! Bitumen etc) are to be intimated by the Contractor, checked and confirmed by the ‘competent authority. ‘The major issue under GST regime isto identify the portion ofthe existing contract that wil Come under GST. Therefore, there Is a need to cull out GST component of the existing contracts (i.e, the value of taxes subsumed under GST). ta sett date for this purpose wil be 01.07.2017 Le, GST willbe applicable on the portions of the contracts that are being paid from 02.07.2017. aoe ef ahe portion ofthe work not completed or not ald for 2s on 01.07.2017 shall Be divided into two components. Value of work including taxes and duties such as Customs Duty, taxes on petroleum products aad ether non-VAT taxes that have not been subsumed into GST should be worked out. a catence wll be the value of taxes subsumed into GST such as Central Excise Duty and vaT ie. GST component. herefore, the value of subsumed taxes under GST needs to be separated ovt from the ‘contracted amount to arrive at the value of work She key issue is to estimate the value of subsumed tax carefully and 3s accurately as possible. For this purpose, an indicative Excel formatis annexe’ for guidance. rose calcuatons are also attached herewith and states may workout similarly for all the going works. Excel sheet incicates various project components which atract various types. oan using ED, CST, VAT/WCT and other taxes which were already in the contract price ae per the original contract. The same format can be used to compile the information are a ngoing project, taking into consideration the GST input tax credit availabe For the project. The assessment of subsumed shall be submitted by the contracioe along with ares of invoices and statement of input taxes duly certified by a Chartered Accountant is ecponsbilty of the contractor to furish correct details of the subsumed taxes, ceeore value of work sanction and GST taxes are arrived, the employer may enter into crmmtemental agreement with revised agreement value that wil be eriginal contracted value are the value of subsumed tax arrived as above plus GST of 12%. ie., the cost of the saevumed taxes factored inthe original contact value is required to be deducted from the sriginal contract price to arrive at the actual amount of "cost of the project. ae GST law allows the ITC (input Tax Credit) under the existing Acts (VAT ete) to be carried Tesurard under their Tanstional Provisions. Therefore, Section 140 of the GST law in effect Slow eredit of all subsumed taxes paid by a taxable person on his inputs, including the Central Excise Duty embedded in the price of inputs. Thus, the supplier gets ITC into the GST crecit ledger through Transitional Provisions {including both the VAT and Central Excise Duty paid on the inputs). {The contractor while raising their bill and tax invoice post-GST, will now collect GST as Indicated above from the employer and will remit the same to the respective Government, ‘The entire GST of the supply will have to be finally borne by the employer. ‘The contractor will have to pay GST on the value of work, which he will pay to the respective Government, partly using the ITC that represents the taxes that he has already paid through the inputs, and partly using cash collected from the procuring entity concerned. “Thwough this arrangement, the supplier also cannot claim to have incurred loss on account of embeded taxes that has been paid on the Inputs. . ategory B ‘The works sanctioned after 03.07.2017, may be treated upon status of their work, as here under: ° For works, which hve been awarded and commenced onthe fl, at i ‘as detailed in the Category A above. eee Scanned with CamScanner73452072022/(F8A) For works, which have been awarded but before commencement of the wor In cases, where tenders are initlated as per, norms, there should be no change In the eval bids shall be evaluated based on the triterla mi after identification of the lowest bidder, GST are carefully deducted to arrive at t agreements should provide for payment of value of canny pyle NRRDA-GO2 (17)73/2017-FA 4 J 5s pur got commenced may also be treated as above e erienaeee Document) the existing SBD (Standard Bidding uation crterla for selection of the bidders and rentioried In the tender documents. However ‘ed that, all taxes subsumed under it must be ensur he value of works under the GST law, and the ‘works plus applicable GST- Category C In cases, where the sanctions have been obtained after OL. the value offered by the ‘The SBD may be modified to the above extent. ‘The Bill of Quantities (800) shal also reflect prices offered by the applicable GST separately. ‘The states shall work out the departmental cost (07.2017 and tenders are yet to be ated, the rates to be quoted shall be exclusive of GST and GST of 32% will be added to Ider separately. \e bidder without GST and of the work without GST for the purpose of evaluation and comparison with rates offered by the bidders. Category D In cases of all new works to be proposed under PMGSY, the states shall prepare Schedule of Rate (SoR) after deducting the taxes subsumed under GST. ‘The Detailed Project Reports shall be prepared based on this revised SoR and the state may add 12% GST to cost of the work to arrive at the overall cost of the work Inall such cases approval of SoR may be obtained from NRRDA as per existing practice. Revision of Cost ‘The states shall work out the impact of GST for all the works individually for all category of works indicated above and shall submit detailed proposals based on the same. Any cost excess that may be required shall be borne by MoRD and the state in the existing Fund sharing pattern of PMGSY as may be applicable to the state. ‘These instructions will not apply to cases were the proposals have been made with necessary GST component for which no revision of cost is required or permitted. ‘This has concurrence of IFD, MoRD vide diary dated 28.05.2018. w Yours sincerely, Director (f&A) Copy to: 1, J5 (RC) & 0G, NRIDA, Krishi Bhawan, New Delhi 2, All Financial Controllers of Nodal Departments of PMGSY 3. 4 5. Director (Tech.)/ Director (P-ll}/Director(P-t, Pll) NRIDA Dy. Secretary (RC Division) MoRD, Krishi Bhavan, New Delhi 3. Dy. Secretary (IFD), MoRD, Krishi Bhavan, New Delhi. sil’ Scanned with CamScannerTas Oaqal ae THe a eticsione Fortine! 5 corganant | nee National Highw ets tr EStporation limited Project Conarackdetals (EPC Contracts) = n Pike aratin | Var of sevice pte 30.8207 | tendered nto 308201 a pee Perera Saeco Per vate of 5 ai za 329 Zi 430) any onset agreement Numbee os Tate Payment Detalis Fear hegine ae clamed ute 186 TOVF | Parents cuined wo “ail conret ce marae var | Oeet 3st ato Tara Be ST 1 The lst Gren ae fer put 2 Te caect et of es fr Ea ST, NAT ae fo be entered 2 The rates fr VATION VAT a 8 mayb appleaBle fr respecte aes “CTnetvect cng sect a ot omer de te competencies 5 The Congonens& Taxes nate, has toe projec spec aNd may ange Scanned with CamScanner 4941504oversize ooosces ooose'ee ‘oocou'se'z som 33 UON 15 5 25 ovesc't coset ooser'st oovoszrt ‘vom 2avoN 0) xsPT ase xsrront Domewy weer maaen a] wae ‘andurvea eal Domes wonware ot ROE war oT 09 [ooweo'Ge'e | pasmszaiun wors erg snoae| ® x00 | awa wom 5000 [oOo Te 3 soso TIRES arooo0T sama > aroooart Toe aroooan orale eso sauna t se] LA ueAse[ey Japun UoNe|ND[eD V4-2102/€/(21)1209-VAMUN (wea) /ozsvez Scanned with CamScanner