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2021 (9) TMI 568 - AAR - GSTClassification of services - composite supply of works contract service - construction of fish market for the Panchayat(Road and Building) Division, Valsad District Panchayat - service recipient is Panchayat - Local Authority or not - merits classification at Serial Number 3(vi)(a) of Notification No.11/2017-Central Tax(Rate) dated 28-6-17 or otherwise? - HELD THAT:- The subject contract is for the construction of immovable property wherein transfer of property in goods is involved in the execution of subject contract. The subject supply is a composite supply of works contract service. The service recipient is Panchayat Vibhag-Road and Building, Valsad District. ‘Panchayat’ is a Local Authority as defined vide Section 2(69)(a) of CGST Act, 2017. Fish Market being a market is covered under said entry 22 of ‘Markets and Fairs’. Further it is stated that ‘Markets and Fairs’ can also be read as ‘Markets or Fairs’. There are merit to classify the subject supply of Fish Market(a composite works contract) to the Valsad Panchayat( a local authority) and this activity is undertaken by the Valsad Panchayat engaged as public authority and the activity squarely falls under the entry no 22- ‘Markets and Fairs’ of the Eleventh Schedule of our Constitution - the subject matter falls within the ambit of ‘predominantly meant for use other than for commerce, industry, or any other business or profession’. The subject Supply is eligible for 12% GST vide Serial Number 3(vi) (a) of said NT (as amended from time to time).
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