TaxTMI 
TaxTMI 
2022 (7) TMI 563
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....reinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: * The applicant, M/s. Siddartha Constructions is engaged in construction services and is one of the successful bidders of online global open e-tenders floated by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC), a Government of Andhra Pradesh undertaking and got selected for the below mentioned work: "providing interior works, furniture and internal electrification in the area allotted to the Hon'ble Minister for Industries at APIIC Tower in IT park, Mangalagiri, Guntur, Andhra Pradesh". * The scope of work order requires the applicant to install internal and external electrification works, furniture, floorings and landscaping for a non-residential / commercial building. They had entered into an agreement in bond no. 41/ENC/APIIC/2020-21 dt:08.04.2021 with the Chief Engineer of APIIC for the above works. * In view of the above facts, the applicant had filed an application in form GST ARA-01 dated 19.07.2021 by paying required amount of fee for seeking Advance Ruling on the following issues, as mentioned below: 4. Qu....
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....f SI.No.3 (vi) of Notification 1.1/2017-Central Tax (Rate) dated 28.06.2017, as amended, composite supply of works contract provided to the Central Government, State Government, Union Territory, Local authority, Governmental Authority or Governmental Entity is eligible for the concessional rate of 6%. "^11[(vi) ^36[Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, 84[other than that covered by items (i), (ia) (ib) (lc) (id) (ie) and (if) above] provided] to the Central Government, State Government, Union Territory, ^13[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 - a) A civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; b) A structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or c) A residential complex predominantly meant for self- use or th....
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....ate Legislature; or (iv) Established by any Government, With 90 per cent or more participation by way of equity or control, to carry out any function entrusted by the Central Government, State Government, Union Territory or a local authority." Further, in it's ruling in AAR No.02/AP/GST/2020 dated 17.02.2020, the Advance Ruling Authority of Andhra Pradesh had also held that APIIC will qualify as a Governmental Entity. In this regard, it is submitted that the reduced rate of 6% CGST under entry 3(vi) would apply only in respect of three types of works mentioned in sub clauses (a) (b) and (c) of clause (vi) of S.No.3, out of which clause (b) is not relevant for the present purpose. Sub clause (a) reads as, "a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession". The explanation to the SI.No 3 (vi) to Notification No.11/2017 was added vide Notification No.17/2018- Central Tax (Rate) dated 26.07.2018 which is reproduced hereunder: "Explanation - For the purposes of this item, the term 'business' shall not include any activity or transaction ....
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....dh P, Advocate attended and reiterated the submissions already made. 7. Discussion and Findings: We have examined the issues raised in the application and the submissions made by the authorised representative of the applicant as well, regarding the tax liability of the transaction involved. As seen from the application, the applicant, M/s. Siddhartha Constructions entered into a contract with Andhra Pradesh Industrial Infrastructure Corporation Ltd., (APIIC) for providing interior works, furniture and internal electrification in the area allotted to the Hon'ble Minister for Industries at APIIC Tower in IT park, Mangalagiri, Guntur, Andhra Pradesh. The issue to be decided is whether the applicant is eligible to avail the concessional rate of GST at 12% as prescribed in SI.No.3(vi) of the Notification no. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time. 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. The said notification has been amended from time to time. Vide Notification No. 24/2017 - Central Tax (Rate), Dated: 21.09.2017, ....
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....n of 'Government Entity' under the above said provisions. Therefore, we conclude that M/s. APIIC is a Government Entity for the purpose of GST matters. b) Now we examine whether the construction work in which the applicant is engaged in is meant for any business or otherwise. The applicant claims that the works involved in the contract are used for the offices of the Hon'ble Minister for Industries and not for the business interests or transactions of APIIC. The point under discussion is whether the work involved, i.e, providing interior works, furniture and internal electrification of the office space of Hon'ble Minister for Industries is meant predominantly for use other than for commerce, industry or any other business or profession. The applicant rather emphatically claimed that the work is meant for the use of Minister for Industries, which is essentially meant for promotion of Business and Industry. Moreover, the recipient of the services, AMC is basically engaged in business activities and even a dose observation of the modus operandi of the organisation prove the same. This would be sufficient enough to come to a conclusion that the said construction i....