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2020 (1) TMI 1429 - AAR - GSTGovernment Entity or not - Uttar Pradesh Power Transmission Corporation Limited - applicability of Notification No. 31/2017 - Central Tax (Rate) dated 13 October 2017 - whether the applicant is either set up by an act of Parliament or state legislature, or, established by any Government - HELD THAT:- In terms of provisions of the Electricity Act, 2003 (which provides for the establishment of State Transmission Utility by State Government) the applicant was formed by virtue of a transfer scheme introduced through Notification Number dated 3rd November, 2015 - M/S UPPTCL was established by the Government of Uttar Pradesh. Holding of 90 percent or more equity or control - HELD THAT:- Out of the total share of M/s. UPPTCL, 83.72% shares are held by the Government of Uttar Pradesh and remaining 16.28 % are held by M/s. UPPCL (a company in which 100% shares are held by the Government of Uttar Pradesh). The Notification No. 11/2017- Central Tax (Rate) dated 28th June 2017 (as amended) envisages an entity as “Government Entity” wherein 90 per cent or more participation by way of equity or control is held by the Government - In the instant case, direct equity held by the Government in M/s. UPPTCL is 83.72% and remaining 16.28 % is held indirectly by the Government through a company in which 100% equity is held by the Government. Another situation envisaged by the Notification No. 11/2017- Central Tax (Rate) dated 28th June 2017 (as amended) is the “control” held by the Government - the applicant fulfills the condition “established by any Government with 90 percent or more participation by way of equity or control” as given in the Notification No. 11/2017 - Central Tax (Rate) dated 28th June 2017 (as amended). The applicant is covered under the definition of the term 'Government Entity' in terms of Notification No. 11/2017- Central Tax (Rate) dated 28th June 2017, as amended by Notification No. 31/2017- Central Tax (Rate) dated 13th October 2017.
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