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2022 (4) TMI 1133 - AAR - GSTClassification of services - rate of GST - execution of works contract service at Kudankulam Nuclear Power Project - applicability of S.No vi (or) vii of Notification No.24/2017 dated 21.09.2017 - requirement of payment of differential tax through debit note under GSTR 1 or not - Government entity or not - HELD THAT:- The applicant is a Joint Venture between M/s. SOM Projects Private Ltd and M/s. Varindera Constructions Limited solely for carrying out the works contract service for Kudankulam Nuclear Power Project (KKNPP), a unit of Nuclear Power Corporation of India Ltd (NPCIL) at their site, namely Anuvijay Township, Kudankulam, Radhapuram Taluk, Tirunelveli, Tamilnadu. From the submissions made by the applicant, it is observed that they have been awarded the project of constructing 360 nos of (D-type Nos., D-special-80 Nos and E-type-40 nos) residential quarters (9 blocks of G+10 floors) for residential usage of their employees at Anuvijay Township, Kudankulam. It has been stated by the applicant that this work order has been received directly from M/s. Nuclear Power Corporation of India Ltd, which is a Government entity and there is no intermediary involved in the whole scheme of transactions. Nuclear Power Corporation India Limited (NPCIL), is a Public Sector Enterprise under the Department of Atomic Energy (DAE), Government of India, incorporated on September 17, 1987 as a Public Limited Company under the Companies Act 1956 with the objective of operating the atomic power stations and implementing the atomic power projects for the generation of electricity, in pursuance of the schemes and programs of Government of India under the Atomic Energy Act and the entire shares are held by the Central Government. Thus, NPCIL is a PSE established under Department of Atomic Energy, (Central Government Department) with 100 percent equity held by the Central Government to implement atomic projects for the generation of Electricity as entrusted by the Central Government and therefore is a 'Government Entity'. Now that it is established that the service recipient is a Government entity, the condition in clause 'c' of SI. No. vi, which stipulates that the supplies should be procured by the said Government entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be is taken up for consideration. In the instant case, the work of construction of residential quarters has been awarded to the applicant by NPCIL - the Works contract service rendered by the applicant in construction of residential quarters fails to satisfy the condition stipulated in Sl.Nos vi of Notification no. 11/17. Thus it is clear that the service rendered by the applicant is not covered by the said Sl.no. vi of the Notification cited supra and shall attract GST at 18%. The services rendered by the applicant, i.e., construction of residential quarters for the employees of KKNPP under the contract awarded by NPCIL is not a service procured by NPCIL, the Government entity in relation to a work entrusted to it by the Central Government and hence rate prescribed in entry at Sl.No. 3(vi) is not applicable to the applicant and the question on modality of payment of differential tax to be paid is not answered as it is questioning the procedural aspect of law, which is not within the purview of Section 97(2).
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