TaxTMI 
TaxTMI 
2023 (1) TMI 287
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....ct has not defined the terms "Central Government", "State Government'', "Union Territory" and "Local Authority" and accordingly request to define the said terms. Further in this regard, we seek clarification as to whether corporations and departments working under various Ministries of Central Government State Governments and UTs will form part of Central Government/ State Government/ Union territory or Local Authority? ii. The above notifications prescribe different rates based on service recipient for e.g., Notification No. 24/2017 states that specified Services provided to the Central Government, State Government, Union Territory or a local authority will be taxable at the rate of 12% (6% CGST & 6% SGST) and that another issue arises here is that if an organization has awarded their company a contract but the said organization is entrusted by a Ministry/ Department of Government to float the tender and award the work to the eligible Contractor, then who will be deemed to be the services recipient, Government or the organization? For Example: Ministry of AYUSH has instructed NBCC (India) Limited to construct an Ayurvedic College in Goa, the applicant was....
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....BCC (India) Ltd. vide Letter No. NBCC/ED (CPG)/2019/0l dated 02/11/2019 (Herein after referred to as Project D) 2.2.5 Renovation, repair, rehabilitation, addition, alteration and aesthetic improvement and other miscellaneous civil and electrical works at Hotel Janpath, New Delhi awarded by Central Public Works Department. Vide F. No. 23 (2)/EECVPD-II/Janpath/2019-20/38 dated 28.02.2020 (Herein after referred to as Project E) 2.2.6 Face lifting and renovation of E Type and F Type buildings in colony of CSTPCS Chandrapur awarded by Maharashtra State Power Generation Company Limited vide F. No. CSTPS/CHN/CMU/Qtr. Renovation/01665 dated 01.02.2019 and F. No.CSTPS/CHN/CMU/Qtr. Renovation/01667 dated 01.02.2019 (Herein after referred to as Project F) 2.2.7 Design and construction of 300 bedded hospital (expandable to 500 bedded) at ESIC, Nandanagar, Indore awarded by Central Public Works Department, Indore vide Letter No. 23 (8)/ का. इ. प. म.-I/सी.पी.डब्ल्यू.डी/2021-22/793 dated 14.06.2021 (Herein after referred to as Project G). That, Copies of Work O....
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....on of Central Government is to include certain work contract supplied to Central Government, State Government, Union Territory local au4lority in 12% GST rate (i.e., 6% CGST & 6% SGST). 3.3 However these notifications have created a certain level of ambiguity as to what is the meaning of Central Government, State Government, Union Territory or local authority. No -clarity has been provided in this regard in the said Notifications. 3.4 that their view point in this regard is that since the client departments as mentioned in question No. 3 above are either owned by one of the Ministries of Central Government or are under the ownership of the Government of India or the respective state government. For Instance: a. NBCC (India) Limited - A Government of India Enterprise (as per the official website of the corporation nbccindia.com/) b. Engineering Projects India Limited - A Government of India Enterprise (as per the official website of the corporation https://epi.gov.in/content/) c. Central Public Works Department -works under Ministry of Urban Development now MoHUA (Ministry of Housing and Urban Affairs) and it is headed by the Director General (DG)....
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.... Notification No. 15/2021, rate of GST applicable to the above projects were 12%. But with the applicability of the said notification, the classification of the above-mentioned tender issuing authorities into Central Government, State Government, Union Territory, and local authority, Government Authority or a Government Entity has created ambiguity regarding ascertaining GST rate. 3.7 that, their point of view on the aforementioned issues is that Corporation and Departments working under various ministries of Central Government, State Governments and UTs will form part of Central Government/ State Government/ Union territory or Local Authority as Central Government has not been defined under the Act. 4. Personal Hearing: - Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant in person, as requested by them and accordingly, Shri Vikas Agrawal, advocate; Shri Prakash Chand Agrawal C.A. and Shri Satish Kumar Sarawgi, C.F.O. legal representatives of the Applicant appeared before us for hearing on 09.03.2022 and reiterated their contention. He also furnished a written submission dated 09.03.2022 along with samp....
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....view of the above section 103 of CGST Act, 2017, the ruling so sought by the Applicant would be binding only on the Applicant and on the concerned officer or the jurisdictional officer as stipulated above. 7. Before getting in to the issues involved, for a better understanding of the subject issue, we would first like to go through the relevant text of the issue in hand, as appearing at S.no. 3 (iii)(b) of Notification no. 11/2017 Central Tax (Rate) dated 28.6.2017 [as amended vide Notification 20/2017 Central Tax (Rate) dated 22.8.2017, Notification no. 31/2017-Central Tax (Rate) dated 13.10.2017 w.e.f 13.10.2017 and Notification no. 22/2021-Central Tax (Rate) dated 31.12.2021 w.e.f 1.1.2022] and S.no. 3 (vi)(b) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 [as amended by Notification no. 46/2017-Central Tax (Rate), dated 14.11.2017, Notification No. 3/2019-Central Tax (Rate) dated 29.3.2019, Notification no. 22/2021-Central Tax (Rate) dated 31.12.2021 w.e.f 1.1.2022 and Notification no. 17/2018-Central Tax (Rate), dated 26.7.2018]. In the instant case the eligibility or otherwise of the benefit of said Notification no. 11/2017 Central Tax (Rate) provided unde....
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....le) and (if) above, provided to the Central Government, State Government, Union territory or a local authority by ways of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - (a)..... (b) a structure meant predominantly of 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 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. [Explanation. - For the purposes of this item, the term 'business' shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.] (vii).................... 6 - 7.2 Thus from the above it gets abundantly clear that for availing the benefit as stipulated supra at S.no. 3(iii)(b), S.no. 3 (vi)(b) and S.no. 3 (vi)(c) ibid of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended, all the conditions mentioned therein has to be necessarily fulfilled.....
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....ture; or (ii) established by any Government, with ninety 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; Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 was further amended by Notification No.32/2017-Central Tax (Rate) dated 13.10.2017 wherein it is mentioned as under: in paragraph 2, for clause (zf), the following shall be substituted, namely: - (zf) "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 ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (vi) (zfa) "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament. or State Legislature; or (ii) established by any Government, wi....
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....ient viz. recipient of the supply of goods or services is someone who is liable for payment of consideration for the supply of goods or services. If no consideration is payable, the person to whom the goods are delivered or made available, or uses the goods or services shall qualify as the recipient. 10. Coming to the third aspect raised by the applicant seeking a ruling to specify the Classification of the Agencies listed out being Corporation or Government Organizations into Central Government, State Government, Union Territory, local authority, Government Authority or a Government Entity, this authority would like to emphasize that Section 97(2) of CGST Act, 2017 stipulates that the questions, on which the advance ruling is sought under this Act, shall be in respect of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; ....