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TMI Blog2024 (7) TMI 1193X X X X Extracts X X X X X X X X Extracts X X X X ..... issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the Notifications issued there under. 3. The applicant requested advance ruling on the following: Clarification is sought on the matter that whether GST at 12% is applicable for the works executed by the company for the period from 01/01/2022 to 17/07/2022, as per notification from State Goods and Services Tax Department, Government of Kerala vide Circular No. 01/2022, No CT/3/2021-C1 dated 19/01/2022. 4. Contentions of the Applicant: 4.1. The applicant submits that it is a Government entity, incorporated in the year 1972 under the Companies Act 1956. Both Central Government and State Government jointly holds the stake of the company, out of which more than 95% of stake hold by the State Government. The corporation is incorporated under the administrative control of the State agricultural Department to improve the development of agriculture in the State. The applicant engaged in various functions such as to promote, undertake and execute land development and allied schemes for the integral development of agriculture. 4.2. The term "Government entity" defined under Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centage charges For the implementation or execution of these works awarded by Government of Kerala at prescribed slab rates as per order No. GO(P) No. 95/2017/Fin DATED 25/07/2017 and GO(P) No 77/2019/Fin dated 04/07/2019. 4.9. The applicant finally concluded that All invoices/claims raised by the contractors for the works undertaken by them are submitted to the Government of Kerala by KLDC and upon sanction and release of funds from Government of Kerala, the same is transferred to the contractors. All works executed by KLDC are the works of Government of Kerala and the funds for implementation of such works are of the Government itself. Hence here the revision of GST rate for Government Entity from 12% to 18% as per above circular is directly enhancing the tax liability of the Government itself. 5. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The Jurisdictional Officer reported that there are no pending or decided proceedings against the applicant regarding the subject matter under any provisions of CGST Act and KSGST Act 2017. 6. Personal Hearing: The applicant was gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department, Govt, of Kerala. 7.5. The applicant submits that being a govt, entity, the works executed by them are solely for and on behalf of the Government of Kerala. Works undertaken by the applicant comprises of civil construction works which are performed by the contractors engaged by them and the funds for these projects are allotted and provided to the KLDC by the Government of Kerala. For the implementation of the contract awarded, the applicant receives only centage charges at the prescribed rates from the Govt, of Kerala. Further the applicant submits that the invoices/claims raised by the contractors for the works undertaken by them are submitted to the Government of Kerala by KLDC, and funds released from the Govt, transferred to the contractors. 7.6. In this regard, the applicant furnished an old 'Memorandum of Understanding' executed on 30.03.2013 between the applicant and Scheduled Caste Development Board, for establishing self-sufficient villages in the Scheduled castes dominant areas having 50 or more families. The Scheme intended to provide internal roads, water supply, sanitation, drainage, electrification, maintenance of houses, skill development progr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sites and Remains Act, 1958 (24 of 1958); 2. canal, dam or other irrigation works; 3. pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. 6 (vi) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above, 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, or alteration of- 1. a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; 2. a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or 3. 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. 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