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2024 (3) TMI 258 - AUTHORITY FOR ADVANCE RULING, KERALAClassification of service - rate of tax applicable for works contract awarded by M/S. Kerala State Film Development Corporation Ltd. (promoted by Government of Kerala) for the development and construction of Sree Narayana Guru Cultural Complex at Kollam - Government Authority of Government Entity - HELD THAT:- From the description of the works submitted by the applicant it is revealed that the following works are awarded to the applicant; Supply of all labour, equipment, materials, plant and machinery, tools, transportation, form work, scaffolding and everything else necessary for the proper execution and construction of a complex predominantly for the use of cultural activities named Sree Narayana Guru Cultural Complex at Kollam - Therefore, the works rendered by the applicant to M/s. Kerala State Film Development Corporation Ltd squarely falls under the definition of works contract in Section 2 (119) of the CGST Act, 2017 and the same will be treated as supply of service. Whether the recipient of service i.e, the awarder M/s. Kerala State Film Development Corporation Ltd falls within the definition of 'Governmental Authority' in Para 2 (zf) or 'Government Entity* in Para 2 (zfa) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017? - HELD THAT:- The works contract services performed by the applicant as per the above-mentioned contracts awarded by M/s. Kerala State Film Development Corporation, a Governmental Authority to construct Sree Narayana Guru Cultural Complex at Kollam is in the nature of construction of a structure meant predominantly for use as a cultural establishment and hence the same is liable to GST at the rate of 12% [6% CGST+6% SGST ] as per entry at SI No. 3 (vi)(b) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended from time to time. If the time of supply of the works contract services as determined in accordance with Section 14 of the CGST Act, 2017 falls on any date prior to 01.01.2022, the aforementioned service will be taxable at the rate of 12% and if the time of supply falls on any date on or after 01.01.2022, the said service will be taxable at the rate of 18%.
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