TaxTMI 
TaxTMI 
2021 (7) TMI 546
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....ereinafter referred to as the "CGST Act" and the "KGST Act/ SGST Act" respectively) engaged in construction of residential and commercial complexes. 3. The applicant has sought advance ruling in respect of the following question: 1. What is the applicable GST rate on construction of AAI residential colony at De venhalli, near Kempegowda International Airport, Bengaluru by the applicant for Airport Authority of India? 4. Admissibility of the application: The question is about "determination of the liability to pay tax on any goods or services or both;" and hence is admissible under Section 97(2)(e) of the CGST Act 2017. 5. The applicant furnishes some facts relevant to the issue: 5.1 The applicant has been awarded contract by the Airport Authority of India and entered into agreement for the construction of residential colony at Devanahalli, near Kempegowda International Airport. The said residential colony is to be set-up / constructed for the employees / staff of Airport Authority of India. 5.2 The applicant contended that the Airport Authority of India is a statutory body (created through the Airports Authority of India Act, 1994) working under the jurisdiction of Directora....
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....loyed for furthering the objectives of Airport Authority of India and carrying out the work entrusted on Airport Authority of India. It is for these employees that the residential structures are being constructed. Such construction is 'in relation' to the work entrusted by the Government on Airport Authority of India. The use of the term 'in relation to' means to bring into Association or connection with. 'Relation to' is equivalent to or synonymous with 'concerning with' and 'pertaining to'. Judgment of the Supreme Court in Doypack Systems (P) Ltd Vs. Union of India 1988 (SC), therefore, the construction work carried out by the applicant is in the opinion of carried out works fall within the ambit of Notification No. 31/2017-CT(R) dated 31.10.2017. 5.6 Further the applicant contended that the rate of tax on construction service as per Notification No.11/2017-CT(R) dated 28.06.2017 vide entry no 3 Clause (i) of Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the....
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....virtual hearing proceedings held on 15-04-2021 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by applicant and his authorized representatives during the hearing. 9. The applicant has been awarded the contract by Airport Authority of India, Bengaluru, vide F.NO.AAI/CHQ/ENGG/SR/ BLR/QTRS/2018 dated 20.03.2018 for the construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport, Bengaluru. 9.1 The question before us is whether the transaction is covered under the Sl.No. 3 (vi)(c) of the Notification No. 11/2017 - Cent....
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.... defined in section 2(119) of the CGST Act, 2017, 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 of 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 is liable to tax at the rate of 6% under the CGST Act. Similar notification also exists under the Karnataka Goods and Services Tax Act and also under the Integrated Goods and Services Tax Act (wherein the tax rate is 12% IGST). 9.3 The applicant is undertaking works contract of construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda International Airport, Bengaluru. As per the letters of Airport authority of India submitted by the applicant, it is clear that the applicant is engaged in construction of residential colony for the staff and employees of Airport authority of India at Devanahalli, Near Kempegowda Internationa....