Works contract service to a trust not treated as Government Entity, so concessional GST rate was denied under the residual entry.

Works contract service supplied to NCBS was examined for the concessional GST rate applicable to services provided to Government, a Governmental Authority, or a Government Entity. NCBS was found to be a trust, not established by an Act or by Government, not under more than 90% Government control, and not shown to perform functions entrusted by Government. The proviso to the concessional entry was therefore not met. The service did not qualify for the lower rate and was instead taxable under the residual entry at 9% CGST and 9% KGST.

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Issues: Whether the works contract service provided to NCBS was covered by the concessional rate applicable to services supplied to the Central Government, State Government, Union Territory, local authority, Governmental Authority, or Government Entity, and if not, whether it fell under the residual taxable entry.

Analysis: The activity was accepted as works contract service. The decisive question was whether NCBS answered the description of a Government Entity or any other listed recipient in the concessional entry. NCBS was found to be registered as a trust, not set up by an Act of Parliament or State Legislature, not established by any Government, and not under more than 90% government control. Its functions were also not shown to be entrusted by the Government. The proviso to the concessional entry was therefore not satisfied. As a result, the service did not qualify for the lower rate under the specific entry and had to be taxed under the residual item.

Conclusion: The service was not eligible for the concessional 6% GST treatment and was taxable at 9% CGST and 9% KGST under the residual entry.

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