AI Drafter 
TaxTMI 
TaxTMI 
2020 (7) TMI 377
X X X X Extracts X X X X
X X X X Extracts X X X X
....this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: M/s KPC Project Limited, 31-15-29, Katuri Vari Street, Machavaram Down, Vijayawada (hereinafter referred to as Applicant), a company incorporated under the Companies Act, 1956 with main object of providing works contract services, executes and conducts general contracting business, submits tenders and undertakes all sort of contracts for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (Whether as goods or in some other form) is involved in the execution of such contract as per Sec 2(119) of GST Act. The applicant submits that they bagged a work order through Agreement No.09/CE-II/APIIC/2016-17, Dt.02/06/2016 from Andhra Pradesh Industrial Infrastructure Corporation Limited (herein after referred to as APIIC), Office of the Chief Engineer-II, APIIC Towers, Plot No.1, IT Park, Mangalagiri-5225o3 Andhra Pradesh for Constr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ration), which is setup by an Act of the Parliament or State legislature, where 90% or more participation by way of equity or control shall be held as government entity. Further, a local authority is also considered to be a government entity. In this regard, they submit that APIIC is incorporated under the Companies Act 1956. APIIC is a limited company with an authorized share capital of Rs. 20,00,00,000/- (Rs. Twenty Crores only) divided into 2,00,000 (Two Lakh only) equity shares and Paid up capital of Rs. 9,52,22,000/- (Rupees Nine Crore Fifty Two Lakh Twenty Two Thousand only) divided into Rs. 95,222 (Rupees Ninety Five Thousand Two Hundred and Twenty Two only) in accordance with the Companies Act, 1956. Further, the subscribers of the equity shares are nominees on behalf of the Government of Andhra Pradesh. Assuming without admitting that APIIC is not a governmental entity, it is submitted that APIIC is still covered under the Notification 11/2017-Central Tax (Rate) dated 28/06/2017, as amended, as the Government of Andhra Pradesh had empowered APIIC with Local Authority Status by amending the Section 147 of Andhra Pradesh State Panchayat Raj Act, 1994, U/s 389-GB of And....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at Hill No.3, Madhurawada, Visakhapatnam Dist work and accepted the quote by KPC and awarded work for Rs. 85,80,31,302/-(Rupees Eighty Five Crores Eighty Lacs Thirty One Thousand Three Hundred and Two only). Scope of the Work: The applicant submits that the awarded work i.e., Construction of Millennium Tower at Plot No. 16 & 17 (in 4.00 Acres) at Hill No.3. Madhurawada, Visakhapatnam District includes Earth Works, Civil Works, Plain and Reinforced Cement Concrete works, Flooring and Wall Finishes works, Doors and Window Works, Elevation Features works, Water Proofing Works, Painting and Finishing Works, Drainage, Sewerage, Water Supply, Plumbing System works, HVAC Works, Electrification Works for IT Tower, Basement, Security Room, Canteen, Dietary-Sanitary and for Common areas. And also scope of the Contract include cost of all Constructional material, labour, machinery, transportation, erection, maintenance and completion with all general risks, liabilities and obligations set out of implied in the Contract. In this regard they further submit that the Contract awarded by the APIIC, shall fall under the purview of Works Contract Service as defined under Section 2(119) of G....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.--For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (6% CGST and 6% SGST) from 22-08-2017 with input tax credit. b) With effect from 13.10.2017 the works contract involving predominantly earth work (i.e., constituting more than 75% of the value of the work) attracts 5% GST with input tax credit. In view of all the above the applicant requests for an advance ruling on Applicability of GST Rate for Construction of Millennium Tower at Madhurawada, Visakhapatnam for Information Technology and Communication Department, Government of Andhra Pradesh and through Nodal Agency APIIC and if at all GST should be payable @12%, whether a claim for refund be submitted in RFD-01. 7. Discussion and Findings: We have examined the specific issues raised in the application i.e. M/s APIIC is Government Entity or otherwise, classification of the service and applicable rate of tax thereon for the agreed works under the provisions of respective GST Acts. Whether M/s. APIIC is a Government Authority / Entity or otherwise The para 4 of clauses (ix) & (x) of Notification No.11/2017 - CT (Rate) dated 28.06.2017 as amended by Notification No.31/2017 - CT (Rate) dated 13.10.2017 is as hereunder; (ix) "Governmental Authority" mea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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% for the construction services provided to Central Government, State Government, Union Territory, a local author....