TMI Blog2020 (5) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... vices Tax Act, 2017. Nature of the organisation covering NCBS - HELD THAT:- The NCBS has obtained registration under the GST Act as a Trust with GSTIN 29AAATT3951F1ZC and the Council managing this organisation has three members appointed by the Government of India, one member appointed by the Government of Maharashtra, two members appointed by the Trustees of Sir Dorabji Tata Trust, the Director of the Institute (NCBS) is an ex-officio member and one co-opted member appointed by the Council. Hence four members are from the Government. Whether NCBS is a Government Entity or not? - HELD THAT:- NCBS is neither set up by an Act of Parliament or State Legislature nor is established by any Government. Further the council which administers t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the KGST Act, 2017 read with Rule 104 of the KGST Rules 2017, in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company incorporated under the Companies Act, 1956 and entered into a works contract agreement with National Centre for Biological Sciences for construction of Hostel building at NCBS Campus in Bangalore. The applicant has sought advance ruling in respect of the following question: Whether applicant should charge GST @12 % for service provided to NCBS as per Notification No 24/2017 Central Tax (Rate) dated 21-09-2017 3. RELAVENT FACTS OF THE CASE a. The applicant states that he has entered into a works contract agreement with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tees of the Sir Dorabji Tata Trust, iv. the Director of the Institute (ex-officio member), and v. one co-opted member appointed by the council. d. The applicant states that in this transaction, two parties are involved viz., the contractor and the contractee and both parties have different opinions regarding the issue in question. The applicant, who is the contractor, is of the opinion that under the GST Act composite supply of works contract services are taxable at 12% or at 18%. The general GST rate is 18% and in some specified cases the lower rate of 12% would be applicable. The applicant states that he is of the opinion that the nature of the construction services provided by him to the contractee is not covered under Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service rendered to the contractee M/s NCBS which is not covered under Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Government Entity . Hence it does not come under the purview Notification No. 24/2017 - Central Tax (Rate) dated 21.09.2017. PERSONAL HEARING 4. Smt Seethalakshmi, Chartered Accountant and duly authorised representative of the applicant appeared and made submissions reiterating the issue involved. FINDINGS DISCUSSION: 5.1 At the outset we would like to make it clear that the provisions of CGST, Act 2017 and SGST, Act 2017 are in pan materia and have the same provisions in like matter and differ from each other only on a few specific provisions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the NCBS is covered under any one of the categories Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Government Entity . It is clear at the outset itself that it is not Central Government or State Government or Union Territory or a local authority or a Governmental Authority. 5.6 The only question that needs to be examined is whether NCBS is a Government Entity or not? Clause (x) of paragraph 4 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 (as amended by Notification No.31/2017 - Central Tax (Rate) dated 13.10.2017) defines Government Entity as under: (x) Government Entity means an authority or a board or any other body including a society, trust, corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be Even here, to be covered under this clause, the services must be procured by NCBS in relation to a work entrusted to it by the Government, which is not the case. 5.9 In view of the above, the service supplied by the applicant is not covered under clause (vi) of Serial No.3 of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time and hence is not taxable at 6% CGST and 6% KGST. And it is taxable at 9% CGST and 9% KGST under the residual item no. (xii) of Serial No.3 of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time. 6. In vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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