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TMI Blog2020 (12) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... and Services Tax Act) relying on clause 119 to section 2 read with item no. 6(a) to the schedule -II of the said Act. For that matter, the applicable rate of tax would be governed by Sr. No. 3 (classification code 9954) of the table in the Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017. B. Whether on the basis of law as well as fact, IIT, Bhubaneswar is a 'Governmental Authority' or a 'Government Entity' as defined at clause no (ix) and (x) in the explanation at serial no. 4 to Notification No. 11/2017 Central Tax (rate) dated 28.06.2017 under Central GST Act. C. If yes, whether the works contract service of construction of IIT Bhubaneswar Campus allotted to the Applicant company, covered under clause (vi)(b) of Sr. No. 3 (classification code 9954) of the table in the Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017. For that matter the applicable rate of tax is 12% (including State GST rate). D. Alternatively, if the works contract service could not be fully/ partially covered under entry 3 (vi)(b), in the facts and circumstances of the Applicant company, then whether it would be covered under 3(vi)(a) of the said notification as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions approved by 'IIT BBS' and to the full satisfaction of 'IIT BBS' through contractors(s) to be engaged by the applicant. Further the applicant shall carry out the work on turnkey basis which includes planning, designing, supervision/construction, furnishing, equipping and handing over the building(s) and other works to 'IIT BBS' in ready to use condition. Further, the applicant Shall follow competitive tendering process for selection of agencies for planning, designing and execution of works of the project, as per their procedure. The applicant shall be paid the actual cost of work plus the agency charges of 5.5% plus service tax and other taxes as applicable from time to time. 2.2 Further, it was also submitted that the applicant have appointed various agencies/ contractors to carry out the project towards its desire completion. In this regard the applicant has awarded work for construction of various buildings, infra facilities, educational blocks to various parties/sub-contractors as per the tender/ BOQ specifications, based on the CPWD Code and practices. 3.0 The personal hearing was fixed on 17.09.2020 under due intimation to the applicant, the jurisdictional officer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omponents with distinct value attributable to each of the components. We, however, do not agree with the contention of the applicant for the reasons that the items covered under the 'Scope of Work' are disjoint in character and can be supplied in conjunction with each other in the ordinary course of business. Hence, we are unable to subscribe to the views of the applicant that the supply of services and goods encompassed in the subject work order/contract are naturally bundled. Mere fact that a number of tasks have been entrusted to the applicant would not make it entitled to be categorized as 'composite supply' particularly in terms of Section 2(30) of the CGST Act, 2017. 4.3 Now, coming to the legal status of IIT, Bhubaneswar. The Applicant has stated that IIT, Bhubaneswar has been established by the Government. All the institutions of the Indian Institutes of Technology are established by the Government of India, Ministry of Human Resource Development. Further, IITs under the All India Council of Technical Education(AICTE) are the institutions controlled and owned by the Ministry of Human Resource Development. That being the stated position, IIT, Bhubaneswar is entitled to be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule-Ill of the Central Goods and Services Act, 2017. The above mentioned Serial No. 3(vi) provides a concessional rate of GST @ 12% subject to condition provided under Column (5) of the said table, which reads as under : Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union Territory or local Authority, as the case may be. 4.6 Now in the instant case we find that the applicant has been engaged as a PMC to execute the contract for carrying out different specified works for IIT, Bhubaneswar which includes erection, commissioning, installation, etc. We also find that for executing the project, the applicant shall be paid agency charges of 5.5% in addition to the actual cost of work. The agency charges are type of commission or remuneration for rendering 'consulting service' to IIT, Bhubaneswar. We also find it necessary to place on record that there are certain items of supply made to IIT , Bhubaneswar including, but not limited to, 'supply of consulting services' which definitely do not find place in the ambit of Sr. No. 3(vi) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the discussions foregoing, we are inclined to hold that the works entrusted to the Applicant by HT, Bhubaneswar under contract/agreement dated 02.05.2016 cannot be termed as composite supply and thus entire work under the said contract shall not be entitled to concessional rate in terms of Notification No. 11/2017-C.T. (R), dated 28-6-2017. However, we also hold that the supply of goods and/or services or both which squarely fall within the ambit of scope of work entrusted to IIT, Bhubaneswar by Government of India shall be entitled for concessional rate under Sr. No. 3(vi) to Notification No. 11/2017-C.T. (R). Accordingly, each and every supply under the subject contract shall be treated separately for determining the rate of tax under the CGST Act, 2017 read with the provisions of GST Tariff and respective exemption notifications. 5.0 RULING 1. Whether on the basis of the facts the nature of supply made by NBCC Ltd. (Applicant) to IIT, BBSR vide the agreement dated 02.05.2016 is a work contract services under Central Goods and Services Tax Act (Odisha State Goods and Services Tax Act) relying on clause 119 to section 2 read with item no. 6(a) to the schedule - II of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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