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2022 (12) TMI 515 - AAR - GSTClassification of services - rate of tax - Government authority/entity or not - works contract service provided to the Telangana State Industrial Infrastructure Corporation Limited (TSIICL) which is wholly owned by the Government of Telangana State by way of construction of building on their land - Whether it is 12% as the for Telangana State Industrial Infrastructure Corporation Limited (TSIICL) is wholly owned by the Government of Telangana or 18% as the for Telangana State Industrial Infrastructure Corporation Limited is a business entity and collecting rent for letting our Godown/Building from its customers? HELD THAT:- Telangana State Tourism development corporation limited is a Government entity. However the original notification No.11/2017 applied concessional rate of tax to Government Entities & Governmental Authorities @6% of CGST & SGST each only if such construction is predominantly for use other than for commerce, industry or any other business or profession. As seen from the agreement contract, the contract is for “construction of ware house & cold storage at primary processing centre in Jillela Village, Tangalapally Mandal of Rajanna Sircilla District. Further, the applicant has also averred that these godowns will be given on rent by TSIICL. Therefore, the concessional rate of tax is not applicable to this transaction and tax payable will be 9% CGST & SGST each. Further, this entry was amended in Nov’ 2021 vide Notification No. 15/2021 dt. 18.11.2021 and the phrases ‘Government Entity’ & ‘Governmental Authority’ were deleted from the Entry at S.No. 3(vi) of Notification No. 11/2017 with effect from 01.01.2022. Thus the works executed even for the ‘Governmental Entity or ‘Government Authority’ will be taxable @9% CGST & SGST each.
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