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2021 (7) TMI 546 - AAR - GSTClassification of services - rate of GST - construction of AAI residential colony at De venhalli, near Kempegowda International Airport, Bengaluru by the applicant for Airport Authority of India - applicability of Sl.No. 3 (vi)(c) of the N/N. 11/2017 - Central Tax dated 28.06.2017 as amended by N/N. 24/2017-CT(R) dated 21.09.2017 - HELD THAT:- As per the letters of Airport authority of India submitted by the applicant, it is clear that the applicant is engaged in construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport, Bengaluru vide awarded contract - Airport authority of India being recipient of service fulfils the parameters as mentioned in the Notification No.31/2017-CT(R) dated 13.10.2017 vide paragraph (iii) item number (ix) as “Governmental Authority”. The said authority is a statutory body set up by an Act of Parliament vide Airport Authority of India Act, 1994. Section 12 of the said Act provides for functions of the authority. The said activity of the construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport is covered under article 243 W of the Constitution. An explanation has been inserted to the above entry by Notification No.17/2018 - Central Tax (Rate) dated 26-07-2018, after which the activities or transactions undertaken by the Central Government, State Government and a Local Authority, in which they are engaged as public authorities alone are to be excluded from the scope of “business” for the purposes of this entry. This Explanation does not exclude a Government Entity and hence the situation remains unchanged even by the aforesaid insertion of explanation so far as the activity of the applicant is concerned. Whether these works are meant predominantly for use other than for commerce, industry, or any other business or profession? - HELD THAT:- The said proposed construction of residential colony or residential complex service given by the applicant to Airport Authority of India as a government authority and predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017 as covered under Serial No. 3 (vi) (c) of the Notification No.11/2017-Central Tax dated 28.06.2017 as amended by Notification No. 24/2017-Central Tax (Rate) dated 21.09.2017 liable to tax at 6% each under CGST as well as 6% under KGST Act. The construction of Airport Authority of India residential colony for self use or their staff/ employees at Devenhalli, near Kempegowda International Airport, Bengaluru by the applicant for Airport Authority of India attracts tax at the rate of 12% as per N/N. 11/2017 - Central Tax (Rate) dated 28-06-2017 as amended by N/N. 24/ 2017 - Central Tax (Rate) dated the 21.09.2017.
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