TaxTMI 
TaxTMI 
2019 (10) TMI 869
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....04 of the CGST Rules, 2017 and under Section 97 of the KGST Act, 2017 read with Rule 104 of the KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company incorporated under the Companies Act, 1956 and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: What is the applicable rate of tax for the provision of construction service rendered to NCBS? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that he has entered into a works contract agreement with National Centre for Biological Sciences for t....
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....ted by the Government of Maharashtra, iii. two members appointed by the trustees of the Sir Dorabji Tata Trust, iv. the Director of the Institute (ex-officio member), and v. one co-opted member appointed by the council. d. The applicant states that in this transaction, two parties are involved viz., the contractor and the contractee and both parties have different opinions regarding the issue in question. The applicant, who is the contractor, is of the opinion that under the GST Act composite supply of works contract services are taxable at 12% or at 18%. The general GST rate is 18% and in some specified cases the lower rate of 12% would be applicable. The applicant states that he is of the opinion that t....
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....-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" f. Hence the applicant is desirous of knowing the exact rate of tax applicable on the said transaction and hence the application. 4. Shri Hanish Jain, Chartered Accountant and duly authorised representative of the applicant appeared and made submissions reiterating the issue involved. The main issue involved is whether the rate of tax applicable to the contract is 12% or 18%. 5. FINDINGS & DISCUSSION: 5.1 The issue involved is examined. 5.2 The applicant is providing works contract service to National Centre for Biological Science (NCBS), and there is no dispute whatsoever tha....
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.... "(ix) "Governmental Authority" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent or more participation by way of equity or control, to carry out any function entrusted to a Municipality under Article 243W of the Constitution or to a Panchayat under Article 243G of the Constitution." 5.6 The only question that needs to be examined is whether NCBS is a Government Entity or not? Clause (x) of paragraph 4 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 (as amended by Notification No.31/2017 - Central Tax (Rate) dated 13.10.2017) defines Government Entity as under: "(x) "G....
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....vided 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" Even here, to be covered under this clause, the services must be procured by NCBS in relation to a work entrusted to it by the Government, which is not the case. 5.9 In view of the above, the service supplied by the applicant is not covered under clause (vi) of Serial No.3 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time and hence is not taxable at 6% CGST and 6% KGST. And it is taxable at 9% CGST and 9% KGST under the residual item no. (x....