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2022 (9) TMI 934 - AAR - GSTBenefit of exemption / concessional rate of GST - Classification of services - works contract services provided to Government Authority and Government Entity - Airport Terminal Building at Sogane Village in Shivamogga taluk and District, Karnataka - Greenfield Airport at Vijaypur in Karnataka State - Construction of High Security Prison at Central Prison, Parappana Agrahara, Bangalore Karnataka State - Construction of Basava International Center and Museum at Kudalasangam of Hunagunda Taluka in Bagalkot District - Construction of Government School Buildings and Hostels at various places in Karnataka State - Applicability of N/N. 15/2021 dated 18/11/2021-Central Tax (Rate). HELD THAT:- Karnataka State Police Housing and Infrastructure Corporation Limited is a company of the Government of Karnataka incorporated under the companies Act 1956 and all the shares of the company are held by Government of Karnataka. In view of the definitions mentioned in the para 10 supra, Karnataka State Police Housing and Infrastructure Corporation Limited qualifies to be considered as a Government Entity. Karnataka Residential Educational Institutions Society (KRIES) is formed under the societies Registration Act to establish, maintain, control and manage residential institutions to the talented and meritorious children belonging to Scheduled caste, scheduled tribe and other backward classes. As per the rules and regulations of KRIES provided by the applicant, Government of Karnataka may appoint persons to review the progress of the society and to hold inquiries into the affairs of the society and give directions to the society with respect of any matter and the society shall be bound to comply with such directions. After going through the website of KRIES it was observed that it consists of 13 members and all are from the State Government - Karnataka Residential Educational Institutions Society qualifies to be considered as a Government Entity. The works of construction of Airport Terminal Buildings/facilities & associated works at Sogane village in Shivamogga Taluk & District, Karnataka and the work of Development of Greenfiled Airport at Vijaypur in Karnataka State are the works awarded by the Public Works Department of Government of Karnataka. Thus these are works supplied to State Government. However the said works for construction of airport terminal building or greenfield airport are predominantly meant for commerce and hence are not covered under Entry 3 (vi), (ix) and (x). The said works are covered under entry 3(xii) - N/N. 22/2021-Central Tax (Rate) dated 31.12.2021 has replaced the words “Union territory, a local authority, a Governmental Authority or a Government Entity” with the words “Union territory or a local authority” and Governmental Authority or a Government Entity were removed from the notification. The supplies made by the applicant in respect of all the contracts awarded to them as mentioned in para 9 supra are covered under entry 3(xii) of Notification No.11/2017 - Central Tax (Rate), dated 28.06.2017 further amended vide Notification No.03/2022-Central Tax (Rate) dated: 13.07.2022, and attracts GST @ 18% (CGST 9% and KSGST 9%) with effect from 18.07.2022.
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