Home Case Index All Cases GST GST + AAR GST - 2022 (7) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 563 - AAR - GSTBenefit of concessional rate of GST - Works Contract - services provided by the applicant to APIIC - appropriate rate and classification of GST - applicability of S.No.3(vi) of the Notification No.11/2017- Central Tax (Rate) dt: 28.06.2017 - whether APIIC which awarded construction work to the applicant would qualify for a Governmental Authority/entity or not? - HELD THAT:- Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) was formed in 1973 by GO No: 831 dated: 10.09.1973 issued by Government of Andhra Pradesh. As seen from the share holding ratios of the 41st Annual Report for the years 2013-2014 as made available by APIIC website https://www.apiic.in, the Government of Andhra Pradesh including its nominees have 100% of share holding and thus it is covered under the definition of 'Government Entity' under the above said provisions. Therefore, we conclude that M/s. APIIC is a Government Entity for the purpose of GST matters. Whether the construction work taken up by the applicant is meant for business or otherwise? - HELD THAT:- The applicant rather emphatically claimed that the work is meant for the use of Minister for Industries, which is essentially meant for promotion of Business and Industry. Moreover, the recipient of the services, AMC is basically engaged in business activities and even a dose observation of the modus operandi of the organisation prove the same. This would be sufficient enough to come to a conclusion that the said construction is for conducting promotional activities, which are essentially business oriented and hence not eligible for concessional rate of 12% available under Notification No.24/2017 - CT (Rate) dated 21.09.2017. Hence, the contract entered by the applicant is classifiable under SAC heading No. 9954 under construction services, with entry no (ii) of serial No.3 of notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 i.e., Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017 and the applicable rate of tax is 18%.
|