TMI Blog2021 (7) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... nctions of the authority. The said activity of the construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport is covered under article 243 W of the Constitution. An explanation has been inserted to the above entry by Notification No.17/2018 - Central Tax (Rate) dated 26-07-2018, after which the activities or transactions undertaken by the Central Government, State Government and a Local Authority, in which they are engaged as public authorities alone are to be excluded from the scope of business for the purposes of this entry. This Explanation does not exclude a Government Entity and hence the situation remains unchanged even by the aforesaid insertion of explanation so far as the activity of the applicant is concerned. Whether these works are meant predominantly for use other than for commerce, industry, or any other business or profession? - HELD THAT:- The said proposed construction of residential colony or residential complex service given by the applicant to Airport Authority of India as a government authority and predominantly meant for self-use or the use of their employees or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the issue: 5.1 The applicant has been awarded contract by the Airport Authority of India and entered into agreement for the construction of residential colony at Devanahalli, near Kempegowda International Airport. The said residential colony is to be set-up / constructed for the employees / staff of Airport Authority of India. 5.2 The applicant contended that the Airport Authority of India is a statutory body (created through the Airports Authority of India Act, 1994) working under the jurisdiction of Directorate General of Civil Aviation, Ministry of Civil Aviation, Government of India is responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in India. It provides Communication Navigation Surveillance / Air Traffic Management (CNS/ATM) services over Indian airspace and adjoining oceanic areas. AAI is currently managing a total of 137[1] Airports, including 23[1] International Airports, 10 Customs Airports, 81 Domestic Airports and 23 Civil enclaves at Defense Airfields. AAI also has ground installations at all airports and 25 other locations to ensure safety of aircraft operations. 5.3 In the instant case, the applicant is supplying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of carried out works fall within the ambit of Notification No. 31/2017-CT(R) dated 31.10.2017. 5.6 Further the applicant contended that the rate of tax on construction service as per Notification No.11/2017-CT(R) dated 28.06.2017 vide entry no 3 Clause (i) of 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) attracts tax at the rate of 9 % CGST and 9% SGST each Clause (ii) of composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017) tax at the rate of 9 % CGST and 9% SGST each clause (iii) of construction services other than (i) and (ii) above. Attracts tax at the rate of 9 % CGST and 9% SGST each. 5.7 The applicant further argued that addition entry no 3 item number (iv) (c)has been inserted through N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant in their application for advance ruling as well as the submissions made by applicant and his authorized representatives during the hearing. 9. The applicant has been awarded the contract by Airport Authority of India, Bengaluru, vide F.NO.AAI/CHQ/ENGG/SR/ BLR/QTRS/2018 dated 20.03.2018 for the construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport, Bengaluru. 9.1 The question before us is whether the transaction is covered under the Sl.No. 3 (vi)(c) of the Notification No. 11/2017 - Central Tax dated 28.06.2017 as amended by Notification No.24/2017-CT(R) dated 21.09.2017. 9.2 Serial No. 3(vi)(c) of the Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by vide Notification No. 24/2017-CT(R) dated 21.09.2017 the entries read as under: Sl.No. Chapter, Section or Heading Description of Services Rate (per cent.) Conditions 3 Heading 9954 (Construction Services) (i) . . . . . . . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract as defined in section 2(119) of the CGST Act, 2017, provided to the Central Government/State Government/Union Territory/a local authority/a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation of a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017 is liable to tax at the rate of 6% under the CGST Act. Similar notification also exists under the Karnataka Goods and Services Tax Act and also under the Integrated Goods and Services Tax Act (wherein the tax rate is 12% IGST). 9.3 The applicant is undertaking works contract of construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport, Bengaluru. As per the letters of Airport authority of India submitted by the applicant, it is clear that the applicant is engaged in construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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