9911796707
TMI Blog2022 (5) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., the applicant, seeking an advance ruling in respect of the following questions. 1. In view of the construction services provided by the applicant to UPRNN, is the applicant eligible to avail the concessional rate of GST at 12% as prescribed in of S. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended? 2. If not, what is the appropriate rate and classification of GST to be charged by the applicant? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract services for the installation, fitting out and construction of the staff quarters. Further, UPRNN is a wholly owned company by the Govt of Uttar Pradesh and satisfies the definition of Government Authority/Govt. Entity. In terms of SI. No. 3 (vi) of Notification 11/2017-CTR dated 28.06.2017, as amended, composite supply of works contract provided to the Central Govt, State Govt, Union Territory, local authority, Governmental Authority or Govt Entity is eligible for the concessional rate of 6%. 2.6 The concessional rate of 6 % CGST under entry 3 (vi) would apply only in respect of three types of works mentioned in sub clauses (a), (b) and (c) of clause (vi) of S. No. 3, out of which sub clause (a) reads as: "a civil structure or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017- CTR provides for a concessional rate of 6% GST. 2.9 ESIC must be considered as a local body as defined under Section 2 (69) of the CGST Act. The promulgation of Employees' State Insurance Act, 1948(ESI Act), by the Parliament was the first major legislation on social Security for workers in independent India. In view of Section 2(69) (c) of the CGST Act, the ESIC is a body entrusted by the Central Government in control of the ESIC fund and governed by the ESIC Act. Hence, ESIC should fall under the category "local authority" and UPRNN and the applicant are providing service to a local authority. 2.10 In view of the above, construction services provided by the applicant to UPRNN are eligible for concessional rate of 6% GST as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that, since they are rendering a Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided to the Uttar Pradesh Rajkiya Nirman Nigam Ltd., ("UPRNN"), a Govt of Uttar Pradesh Undertaking i.e. a Governmental Authority/Government Entity by way of construction of Staff Quarters for ESIC, it is construction of "a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession" and therefore, provisions of Sr. No. 3 (vi) to Notification No. 11/2017-CTR dt 28.06.2017 as amended, is applicable to their supply attracting concessional rate of GST @ 12%. Therefore, the relevant Sr.No. 3 (vi) mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Residential Quarters meant for the use of the employees of ESIC and therefore, it can be said that the supply is in respect of a 'civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession'. 5.3.3 However we also find that, the above mentioned Rate Notification No 11/2017 has been further amended by Notification No. 15/2021 - CTR dated 18.11.2021 (with effect from 01.01.2022) and in Sr. No 3, in column (3), in the heading "Description of Services", in item (vi), for the words "Union territory, a local authority, a Governmental Authority or a Government Entity" the words "Union territory or a local authority" have been substituted and that means the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is if the impugned service is not covered under Sr.No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, then what is the appropriate classification and rate of GST to be charged by the applicant. 5.4.2 Since the impugned service is expected to commence only at a future date, in view of the amended Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, the impugned activity is not classifiable under Sr. No. 3 (vi) mentioned above and the said activity will be covered under the residuary clause (xii) of Sr. No. 3 of Notification No. 11/2017- mentioned above and the rate of GST to be paid by the applicant will be 18% of the taxable value. 06. In view of the extensive deliberations as held hereinabove, we pas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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