TMI Blog2022 (7) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... seen from the shareholding ratios of the 41st Annual Reports for the years 2013-14 as made available by APIIC website https://www.apiic.in, the Government of Andhra Pradesh including its nominees is having 100% of shareholding and thus it is covered under the definition of 'Government Entity' under the above said provisions. Therefore, we conclude that M/s APIIC is a Government Entity for the purpose of GST matters. Whether the construction works taken up by the applicant are meant for use other than for commerce, industry, or any other business or profession? - HELD THAT:- On looking into the listed construction projects sl.no from 1 to 6, prima facie, it is evident that all of them are meant for business purpose only. Moreover, the applicant did not provide any information or documentary proof clarifying that the constructions are for use other than for commerce, industry, or any other business or profession, to be eligible for concessional rate of 12% (6% CGST + 6% SGST) available under Notification No.24/2017 - CT (Rate) dated 21.09.2017 - In this case, the works executed by the applicant are classifiable under SAC Heading No. 9954 under construction services, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity: The applicant seeks advance ruling on the following: 1. Applicability of CGST and SGST Tax Rate on the listed works executed for Andhra Pradesh Industrial Infrastructure Corporation (APIIC). 2. Applicability of CGST and SGST Tax Rate on construction of 20MT cold storage building for Primary Processing Centre (PPC) under Mega park scheme at peddapuram, East Godavari district. On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction, i.e. Assistant Commissioner (ST) Steel Plant Circle, Visakhapatnam Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax Authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. No remarks were received from the jurisdictional officers concerned on the issue. 5. Applicant's Interpretation of Law: The applicant seeks Advance Ruling in the context of the argument put forth by its contractee, APIIC that all the works executed for them attract concessional rate of tax. APIIC Claims that it is a Government company and works executed to them shall be considered as works executed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2017 is treated as supply of service in terms of Serial No.6 (a) of Schedule II of CGST Act, 2017 / APGST Act, 2017. 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. Under this notification for heading 9954, the applicable rate of GST is 9%. The said notification has been amended from time to time and the following notifications are issued by the Government of India and the said amendment Notifications are as follows - 1) Notification No- 20/2017 Central Tax (Rate), Dated - 22/08/2017. 2) Notification No- 24/2017 Central Tax (Rate), Dated - 21/09/2017. 3) Notification No- 31/2017 Central Tax (Rate), Dated - 13/10/2017. 4) Notification No- 46/2017 Central Tax (Rate), Dated - 14/11/2017. 5) Notification No- 01/2018 Central Tax (Rate), Dated - 25/01/2018. Vide Notification No. 24/2017 - Central Tax (Rate), Dated - 21.09.2017, Government of India by inserting entry No. (vi) notified concessional GST rate of 6%. In this regard the applicant claims that APIIC is a Government company and works executed to them shall be considered as works exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) established by any Government, with 90% or more participation by way of equity or control, to carry out any function entrusted by the Central Government, State Government, Union Territory or a local authority . If we look into the genesis of Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC), it was formed in 1973 by GO No. 831 dated 10-SEP-1973 issued by the Government of Andhra Pradesh. As seen from the shareholding ratios of the 41st Annual Reports for the years 2013-14 as made available by APIIC website https://www.apiic.in, the Government of Andhra Pradesh including its nominees is having 100% of shareholding and thus it is covered under the definition of 'Government Entity' under the above said provisions. Therefore, we conclude that M/s APIIC is a Government Entity for the purpose of GST matters. 2) . Now we examine whether the construction work in which the applicant is engaged in, is meant for any business or otherwise. When we look into the listed construction projects sl.no from 1 to 6, prima facie, it is evident that all of them are meant for business purpose only. Moreover, the applicant did not provide any information or d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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