TMI Blog2019 (1) TMI 1669X X X X Extracts X X X X X X X X Extracts X X X X ..... 12% (6% under Central tax and 6% State tax) are any other concessional rate is NOT available to the applicant - As per Section 2 of CGST Act, 2017 and APGST Act, 2017 defines works contract as a contract for building, construction, fabrication, completion, erection, installation fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. The composite supply of works contract as defined at Section 2 of CGST Act 2017 and APGST Act, 2017 is treated as supply of service in terms of Serial No.6, Schedule II of CGST Act 2017 and APGST Act, 2017. In the instant case, the contract entered by the applicant squarely falls under the works contract and falls under entry no. (ii) of S. No. 3 of the table of notification no 11/2017 - Central Tax (Rate), Dated - 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% (9% under Central tax and 9% State tax). - AAR 03/AP/GST/2019 - - - Dated:- 30-1-2019 - D. Ramesh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs including supply of all necessary materials in 5 Districts of APEPDCL under Integrated Power Development Scheme (IPDS) on Full Turn-key basis Further, the applicant revealed that for all the works the bills are being raised on the Accounts Officer, Pay Accounts of respective APSPDCL and APEPDCL. 4. QUESTION RAISED BEFORE THE AUTHORITY: The applicant seeks Advance Ruling on the following; 1. (a) Whether in the terms and conditions of the following contracts that the applicant entered into, the contractees therein the 'supply of service' involved therein would amounts to a supply to Government, Government Agency or Government Entity in terms of the Notification No.20 dated:22-08-2017, Notification No. 24 dated:21-09-2017, Notification No.31 dated:13-10-2017 and , Notification No.32 dated:13-10-2017 (b) What would be the norms to decide a contractee is Government / Government Agency / Entity. Contracts Descriptions being done to Andhra Pradesh Power Distribution Corporations (DISCOMS) i) HVDS-High Voltage Distribution Systems ii) SCADA-Supervisory Control and Data Acquisition 2. When the contractee gets funds/grants fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9%. The said notification has been amended from time to time and till date Five notifications are issued by the Government of India and the said amendment Notifications are as follows:- 1) Notification No- 20/2017-Central Tax (Rate), Dated- 22/08/2017. 2) Notification No- 24/2017-Central Tax (Rate), Dated- 21/09/2017. 3) Notification No- 31/2017-Central Tax (Rate), Dated- 13/10/2017. 4) Notification No- 46/2017-Central Tax (Rate), Dated- 14/11/2017. 5) Notification No- 01/2018 Central Tax (Rate), Dated - 25/01/2018. Vide notification No. 24/2017 - Central Tax (Rate), Dated - 21/09/2017, Government of India by inserting entry No. (vi) notified concessional GST rate of 6% for the construction services provided to Central Government, State Government , Union Territory, a local authority or a Governmental Authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; b) a structure meant predominantly for use as (i) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y APSPDCL and APEPDCL as detailed in Para 3 above. The works under discussion have been undertaken to execute/implement various projects for (a) conversion of existing LT network into High Voltage Distribution system (HDVS); (b) supply, erection, testing commissioning of 11 KV autorecloers, 11 KV sectionalisers to industrial feeders on full turn-key basis; and (c) supply, erection, testing commissioning of 11 KV autorecloers, 11 KV sectionalisers to industrial feeders on full turn-key basis under Integrated Power Development Scheme (IPDS). As seen from the nature of the work stated in Annexure-II by the applicant, the works are of industrial nature as those works are to be done to industrial feeders too. Further, the applicant revealed that the contractee is collecting security deposits from the customers. Moreover, the Government of Andhra Pradesh is reimbursing the money for agricultural services to the contractee on behalf of the customers. Therefore, the works executed are to a business entity by the applicant. The contractee is not rendering any non-commercial services in as much as they are getting reimbursed for their commercial activity on behalf of their customer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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