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2022 (9) TMI 417 - AAR - GSTExemption from GST - Works contract services - executed as a main contractor as well as sub-contractor - Karnataka Slum Development Board under the Prime Minister Awaz Yojana - Belagavi Smart City Limited projects to Belgaum Smart City Corporation Limited - Karnataka Housing Board, Bangalore with respect to construction of police station at Govindarajanagar, Bangalore - Governmental Authority - N/N. 20/2017-Central Tax (Rate) dated 22nd August 2017 - HELD THAT:- The Karnataka Housing Board (referred as KHB) is established under Karnataka Housing Board Act 1962 and carries out function entrusted by the State Government. Hence the same may be considered as Government Entity as per the definition. Since the applicant is into construction of Magadi road police station, the services provided by the applicant are covered under entry 3(xii) of Notification No.11/2017 - Central Tax (Rate), dated 28.06.2017 further amended vide Notification No.03/2022-Central Tax (Rate) dated: 13.07.2022 and is taxable at 18% GST. The company is a Special Purpose Vehicle created for implementation of smart city project in the city of Belagavi. Hence Belagavi Smart City Limited is neither a Governmental Authority nor a Government Entity as per the explanation mentioned in para 13 supra. In view of the same, the services provided by the applicant to BSCL is liable to CGST at 9% as per the entry 3 (xii) of Notification No.11/2017 - Central Tax (Rate), dated 28.06.2017 further amended vide Notification No.03/2022-Central Tax (Rate) dated: 13.07.2022 and is taxable at 18%. The Composite supply of works contract provided by a sub-contractor to the main contractor who provides services specified in item 3(iii) or item 3(vi) to the Central Government, State Government, Union territory or a local authority are liable to tax at 12% GST. Since the services provided by the applicant are not covered under entry 3(iii) or item 3(vi), the same are liable to tax at 18% GST even though the services are executed as a subcontractor.
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