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2022 (3) TMI 180 - AUTHORITY FOR ADVANCE RULING, TELANGANAAvailability of concessional rate of GST - works contracts - execution of works for Telangana State Industrial Infrastructure Corporation Limited (TSIIC) - construction for administrative building for the TSIIC - taxable at 12% as prescribed in of S. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended or not - appropriate rate and classification of GST to be charged by the applicant - HELD THAT:- TSIIC being wholly owned by Government of Telangana qualifies to be a Government entity under the term ‘Government entity’. The Memorandum of Association of TSIIC at clause III(a)(3) clearly states that the company pursues the objectives to implement the schemes of incentives, subsidies and the like formulated by the Government of Telangana or Government of India or other authorities or institutions and to administer such schemes of incentives from time to time in the interest of establishments and development of industries. Thus TSIIC organization works to further the policies of the State Government, Central Government and Local Government for development of industries in the State of Telangana. The applicant has executed works contracts for TSIIC which is a Government entity - this work is construction of Administrative building. Therefore the civil structure is not meant for commerce/industry or any other business - the Government entity i.e., TSIIC has procured the works contract service in relation to the work entrusted to it by the State Government. Thus, the works contract executed by the applicant for construction of Administrative building for TSIIC falls under Sr No. 3(vi) of Notification No. 11/2017-CT (Rate) as amended till date and therefore taxable at the rate of 6% under CGST & SGST each. However for works executed from 01-01-2022, the rate shall be 9% under CGST & SGST each as the Phrase ‘Governmental authority or Governmental entity’ is excluded, vide notification Number. 15/2021, dated.18.11.2021.
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