TMI Blog2022 (12) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 11/2017 and therefore attract a concessional rate of tax in the capacity of contracts made to Government entity @6% CGST SGST upto 31.12.2021 as this entry was amended to exclude Government Entity Government authority vide Notification No. 15/2021 dt:18.11.2021 so that now the rate of tax for works executed from 01.01.2022 is 9% CGST SGST each. The structures constructed by the applicant will be used for the purpose of business and therefore these contracts are not qualified for concessional rate of tax made to Government Entity. Hence the rate of tax applicable on supply of these contract services is 9% CGST SGST each from the inception of the contracts. - A.R.Com/15/2022 TSAAR Order No.57/2022 - - - Dated:- 8-12-2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant having a bearing on the question(s) on which Advance Ruling is required is reproduced below- The applicant M/s. Shree Constructions are in the business of works contracts wherein they are executing some works on the land provided by the Telangana State Tourism Development Corporation Limited (TSTDCL). The applicant submitted that the TSTDCL is wholly owned by the Government of Telangana and therefore the supply of works contract service to them constitutes a supply to a Government entity. The applicant therefore seeks an advance ruling on the rate of tax applicable to supplies made to such Government entity. 4.2 Company Background: The applicant M/s Shree Constructions doing works to Telangana State Tourism Development Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as follows: S.No. Work order no Date Item of work 1 2 3 4 1 TSTDC/Engg/E3/Pedda Chervu-MBNR/2020-21 06.03.2021 Bund beautification of Pedda chervu at Mahaboobnagar Municipality, Mahaboobnagar Dist 2 TSTDC/Engg/E1/Suspension bridge-MBNR/2022-23 27.06.2022 Construction of suspension wood bridge at pedda chervu in Mahaboobnagar town, Mahaboobnagar Dist 3 TSTDC/Engg/E3/Shilparamam-MBNR/2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or (d) 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. 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. Explanation .- For the purposes of this item, the term business shall not include any activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts made to Government entity @6% CGST SGST upto 31.12.2021 as this entry was amended to exclude Government Entity Government authority vide Notification No. 15/2021 dt:18.11.2021 so that now the rate of tax for works executed from 01.01.2022 is 9% CGST SGST each. However for the next (2) contracts listed above it is seen that the structures constructed by the applicant will be used for the purpose of business and therefore these contracts are not qualified for concessional rate of tax made to Government Entity. Hence the rate of tax applicable on supply of these contract services is 9% CGST SGST each from the inception of the contracts. 9. In view of the foregoing, we rule as follows: In view of the above discussion, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uspension wood bridge at pedda chervu in Mahaboobnagar town, Mahaboobnagar Dist 12% upto 31.12.2021 18% from 01.01.2022 Execution of works not for commerce, industry or any other business or profession 3 TSTDC/Engg/E3/Shilparamam-MBNR/2020-21 18.12.2020 Establishing mini shilparamam at Tank bund area in Mahaboobnagar Municipality, Mahaboobnagar Dist 18% Execution of works for commerce, industry or any other business or profession 4 TSTDC/Engg/E3/Neera caf Plant/2020-21 04.11.2020 Construction of Neera caf and food ..... X X X X Extracts X X X X X X X X Extracts X X X X
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