2023 (8) TMI 1204 - AUTHORITY FOR ADVANCE RULING, TAMILNADU

Works contract services - Applicable rate of Tax under Goods and Services Act, 2017 - Supply of services by the applicant to M/s Tamilnadu Water Supply and Drainage Board - applicability of N/N. 15/2021-CT(Rate) dated 18.11.2021 r/w Notification No. 22/2021-CT (Rate) dated 31.12.2021 - HELD THAT:- It is clear that TWAD Board has been constituted only to implement certain functions (not all the functions) of local bodies and it cannot be equated to a local body and hence it can be concluded that TWAD Board is not a Local Authority.

M/s Tamil Nadu Water Supply and Drainage Board is a 'Governmental Authority' as defined under 2(zf) of the Notification No. 12/2017-CT(rate) as amended effective from 13.10.2017 and thereby supply is made to the 'Governmental Authority' by the Applicant.

The works contract services provided by the Applicant to TWAD Board is covered under the above entry and exigible to tax @18%, in as much as TWAD Board qualifies as a Governmental Authority.