TMI Blog2020 (8) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... sion (OERC) and also in compliance of the provision of the Orissa Electricity Reform Act, 1995 and Electricity Act, 2003. Thus, M/s Odisha Power Transmission Corporation Limited falls under the domain of Government entity in terms of the provisions of Not. No. 11/2017-CT Dt. 28.06.2017 (as amended). Applicability of Tax rate prescribed under entry no. (vi) Sl. No. 3 of Not. No. 11/2017-CT Dt. 28.06.2017 - HELD THAT:- The applicant is engaged in execution of works awarded by M/s Odisha Power Transmission Corporation Limited, Janapath, Bhubaneswar as detailed in Para above. The works under discussion have been undertaken to execute/implement for Erection, Testing and Commissioning of 51 nos 33/11 kv Substation and Associated Lines on EPC contract basis with complete facilities within the jurisdiction of DISCOM SOUTH CO in the districts of Ganjam, Gajapati, Kandhamal, Koraput, Malkangiri, Rayagada, Boudh and Nabarangput under Package-2 of Phase-III, ODDSSP - As seen from the nature of the work stated by applicant in Contract agreement with M/s Odisha Power Transmission Corporation Limited, Janapath, Bhubaneswar, the works are of Industrial nature as those works are to be done to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 5,000/- for SGST and ₹ 5000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted. 4. QUESTION RAISED Whether EPC Contract in respect of power distribution and Transmission company fall under the category of Government Entity as per GST notification number 1/2018 Central Tax(Rate), if so the rate of GST applicable. On Verification of basic information of the applicant, it is observed that the applicant falls under State Jurisdiction, i.e. Assistant Commissioner (State Tax), Narayanaguda M.J Market Circle, Hyderabad. Accordingly, the application has been forwarded to the jurisdictional officer to offer their remarks as per the Section 98(1) of TSGST Act, 2017. It is submitted that there is No pendency of the issue in respect of M/s Vishwanath Project Ltd., as such the VAT Audit CST Assessment was completed upto June, 2017 in the above case. 5. THE FACTS OF THE CASE HAVING A BEARING ON THE QUESTIONS a. The applicant is providing services viz., Supply, Erection. Testing Commissioning of 51 Nos. 33/11kV Substations wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Heading 9954 (Construction services) (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) 9 - (ii) composite supply of works contract as defined in clause 119 of section 2 of Telangana Goods and Services Tax Act, 2017 9 - (iii) construction services other than (i) and (ii) above. 9 - Subsequently the above notification was amended by the following Notifications from time to time as under : 1. Notification No. 20/2017 Central Tax (R), Dt. 22-08-2017 vide G.O.Ms No. 227, Revenue (CT-II) Department, Dt. 05-10-2017. 2. Notification No. 24/2017 Central Tax (R), Dt. 21-09-2017 vide G.O.Ms No. 252, Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment Entity or not? As per Notification No. 31/2017 Central Tax (Rate), Dated.13-10-2017 vide G.O.Ms No. 253, Revenue (CT-II) Department, dt. 23-11-2017, Government Entity is defined as under: Government Entity means an authority or a board or any other body including a society, trust, corporation. i) Set up by an Act or Parliament or State Legislature; or ii) Established by any Government, with 90 percent or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. It is evident from the website of OPTCL it is understood that with the enactment of the Electricity Act, 2003, the Government of Orissa through notification of a Transfer Scheme transferred the transmission business of GRIDCO and vested the same with OPTCL with effect from 01-04-2005. OPTCL, registered on 29th March, 2004 under the Companies Act, 1956, is a wholly owned Government Company. Under the Transfer Scheme, OPTCL has been notified as the State Transmission Utility (STU) and is also mandated to discharge the State Load Dispatch functions. Under the provisions of the Electricity A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for non-commercial purposes, it turns out that they get reimbursed for their activity on behalf of their customers from the State Government, which by no stretch of imagination can be called as Non-commercial . Therefore, since the works are used for commercial / business purpose the benefit of Concessional Rate of 12% (6% under Central tax and 6% State tax) or any other concessional rate is NOT available to the applicant. We find that the services rendered by the applicant squarely falls under the works contract and fall under entry no. (ii) of S.No. 3 of the of Not. No. 11/2017 CT (R), Dt. 28-06-2017 (as amended) and corresponding notifications under TGST Act, 2017, and the applicable rate of tax is 18% (9% CGST + 9% SGST) for the period from 01.07.2017 to 31.03.2019. It is further observed that entry no. (ii) of S. No. 3 was omitted w.e.f 01.04.2019 by Not. No. 03/2019-CT (R) dated 29.03.2019. Nevertheless, we find that entry no. (xii) of S. No. 3 of Not. No. No. 11/2017 Central Tax (Rate), Dt. 2806-2017 (as amended) prescribes rate of tax is 18% (9% CGST + 9% SGST) in respect of constructions not specified under entry numbers other than (i), (ia), (ib), (ic), (id) ..... 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