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TMI Blog2021 (7) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... ss a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act. 2. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Technosoft Solutions (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 1) The applicant, M/s. Technosoft solutions, Visakhapatnam is a registered GST dealer having GST No.37AEWPA9021R1ZQ and engaged in electrification work. The applicant entered in to contract with Andhra Pradesh Eastern Powe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below: 4. Questions raised before the authority: 1. Whether APEPDCL can be treated as a limb of Government of AP or not? 2. The rate of tax is 12% or 18% and also under which SAC/ HSN code the above work which was awarded by the APEPDCL falls. Broad scope of work: "Erection of S-Ph 16KVA DTRs, 6.3KV & LT lines to extend Grid supply to Tribal habitations which were already electrified with DDG Projects in Srikakulam and Visakhapatnam Circles on partial turnkey basis under Tribal Sub-Plan (TSP). 3. Whether the rate of tax 12% to be charged as directed by the APEPDCL as the tribal sub work, which are implemented with 100% grants given by Government of AP are liable to be taxed at the rate of 12% or 18%. On Verification of basic informat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant, it is a 'works contract' as per section 2(119) of the CGST Act, 2017 which means, "a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;". As per Schedule II of the GST Act, 2017 of para 6(a), works contract shall be treated as "supply of service". The Government of India vide Notification No. 11/2017 - Central Tax (Rate), dated: 28th June 2017 notified the rate of GST applicable on supply of services. "The composite supply of works contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Government Entity" b. The works involved shall be meant predominantly for 'use other than for commerce, industry, or any other business or profession;' Now we examine the above two parameters in detail : a) Status of APEPDCL: As per Notification No. 31/2017 - Central Tax (Rate), Dated - 13/10/2017 issued under CGST Act, 2017 and corresponding notification under APGST Act, 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 of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Finally, even though APEPDCL has been considered as a 'Government entity', the services provided by the applicant are proved to be for the use of business purpose. Hence, The Applicant is not entitled for the benefit of concessional rate of GST @12% (6% under Central tax and 6% State tax) in terms of Notification No.24/2017-Central Tax (Rate) dated:21.09.2017 read with Notification No.31/2017-Central Tax (Rate) dated: 13.10.2017. With the foregoing, we rule as under. RULING (Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017) 1. Question: Whether APEPDCL can be treated as a limb of Government of AP or not? Answer: APEPDCL is a 'Government Entity'. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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