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2018 (6) TMI 111 - AAR - GSTClassification - Nature supply - divisible contract [Supply of goods & Supply of Services] or an indivisible contract [works contract] - Construction of power lines, erection of transmission towers and transformers - single composite contract, but with three connected agreements for Supply of Materials, Erection and Civil Works respectively - KPTCL is a Government body or not - Whether the contract, executed by them for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [works contract]? - Whether the tax rate of 12% [CGST-6% + SGST-6%] is applicable to the contract, in pursuance of N/N. 24/2017-Central Tax (Rate) dated 21.09.2017? Held that:- The composite supply of works contract as defined at Section 2 clause 119 of CGST Act 2017 is treated as supply of service in terms of serial no.6, Schedule II of CGST Act'2017 - the applicant, being the successful bidder, got the single composite contract, but with three connected agreements for Supply of Materials, Erection & Civil Works respectively. All the three agreements were awarded to the applicant in response to a single tender notification & the general terms and conditions are commonly applicable to all the three agreements. The applicant is supplying the material and providing the erection of towers service and also civil works service. Therefore the contract entered by the applicant is of the nature of “indivisible' and squarely falls under the works contract, which is a service. Whether the applicant is entitled for the concessional rate of GST @ 12% as per Notification No.24/2017 Central Tax (Rate) dated 24.09.2017 or not? - Held that:- The regulatory bodies and other autonomous entities would not be regarded as the government or local authorities for the purposes of the GST Acts. Therefore M/s KPTCL can not be a State Government - Further M/s KPTCL, who awarded the contract to the applicant, are registered under Companies Act 1956 as a company and is a separate entity. Therefore it can not be considered as the State Government or a State Government Authority. Hence the applicant is not entitled for the benefit of the concessional rate of GST @ 12%, in terms of N/N. 24/2017-Central Tax (Rate) dated 21.09.2017. Ruling:- The contract contract entered by the applicant is of the nature of 'indivisible' and squarely falls under the works contract, which is a service - The Applicant is not entitled for the benefit of concessional rate of GST @12% in terms of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017.
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