TaxTMI 
TaxTMI 
2023 (7) TMI 572
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.... a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The applicant requested an advance ruling on the following: 3.1. Whether, having regard to the background and details including the scope: of the Deposit work contained in the MoU entered into between CoPT and IN, what is the nature of the services rendered by CoPT under the MoU? Whether it? would be treated as a 'Works Contract'' as per Section 2 (119) of the CGST Act or as a Composite Supply for services as per Section 2(30) of the CGST Act or as a mixed supply as defined in Section 2(74) of the CGST Act? 3.2. Whether, CoPT being a Govt. entity, as defined in the CGST (Rate) Notification No. 32/2017 dated 13 .10.2017, can it avail the benefit of exemption notification No. 12/2017 dated 28.06.2017 and not levy tax on invoice on Indian Navy? 3.3. If, for any reason, the benefit of exemption Notification No. 12/2017 dated 28.06.2017 cannot be availed whether, having regard to the background and details including the scope of work of the Depo....
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....tty after the demolition of existing Jetty" for IN on Deposit Work terms. The project cost estimated at the time of signing of the MoU is Rs. 596.43 Crores. The Ministry of Defence, Government of India has accorded sanction for the above purpose by letter Ref No. DY/8163/North Jetty/D [N-III] /598/2015 dated 21.03.2018. 4.2. As per the broad terms of the MOU; a) CoPT has to execute the work on deposit work basis. b) The designs and drawings are supplied by the project consultant appointed by IN. c) The work has to be completed within 48 months from the date of issue of first work order by CoPT for construction works. d) The broad guidelines are as per provisions of CPWD Works Manual; 2014. e) Specific terms shall be as per the procedures approved by the Ministry of Shipping, Government of India. 4.3. The sequence of work execution and the payment of consideration thereof are detailed in Para 2 of the MoU. The other relevant terms of the MoU are; a) Studies: All relevant studies land assessment that are required shall be undertaken by IN through established agencies. b) Approvals and clearances: Environmental / CRZ....
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.... territory, local authority or any person specified by Central Government, State Government, Union Territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants; The notification defines term 'Government Entity' as under: "Government Entity" means an authority or a board or any other body including society, trust, corporation; (i) setup by an Act of Parliament or State Legislature; or (ii) established by any Government with 90 per cent or more participation by way of equity or control, to carry out a junction entrusted by the Central Government, State Government, Union Territory or a local authority". 4,6. CoPT is established by the Central Government under Major Port Trusts Act. 1963 and also 100% control of CoPT is with the Central Government. Therefore, CoPT falls under the above definition 'Government Entity' since it complies both the conditions (i) and (ii) above. The expression "grant" has a broad meaning and hence the project funded by the Central Government falls under the expression "grant" for the purpose of the above notification. Acc....
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....any comments and hence it is presumed that the jurisdictional Officer has no specific comments to offer. It is also construed that there are no proceedings pending on the issue against the applicant 6. Personal Hearing: The applicant was granted an opportunity for a personal hearing on 20,07.2022 via virtual mode. Shri, Radhesh L. Bhat, Chartered Accountant attended the personal hearing. The representative reiterated the contentions made in the application. 7. Discussion and Findings 7.1. The issue was examined in detail. At the outset, it has to be examined whether the questions on which advance ruling is sought arc admissible as per the provisions of the CGST Act 2017 governing advance ruling, 7.2. Section 95(a) of the CGST Act defines 'advance ruling' as follows: - (a) "advance ruling" means a decision provided by the Authority or the Appellate Authority or the National Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of section 100 or of Section 101C, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 7.3. Fro....
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....following conditions are satisfied; (1) the applicant is either registered under GST law or is desirous of obtaining registration; (2) the matter or question pertains to any issue specified in Section 97 (2); (3) such a transaction is being undertaken or proposed to be undertaken by the applicant and the advance ruling is binding only on the applicant and the jurisdictional officer of the applicant. 7.7. On perusal of the fourth and fifth questions raised by the applicant it is seen that the applicant has sought the taxability of the services provided by the contractors / sub-contractors to the applicant / contractors and hence the applicant is the recipient of the services. Therefore, the questions do not pertain to a transaction that is being undertaken or proposed to be undertaken by the applicant and hence do not fall within the purview of the definition of advance ruling. Further, it is categorically stated in Section 103 of the CGST Act that the ruling pronounced is binding only on the applicant and the jurisdictional authority of the applicant. Hence, if a recipient obtains a ruling on the taxability of his inward supply of goods or services or ....
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....ral Tax (Rate) dated 13.10.2017. 7.13, The Notification No. 32/2017- Central Tax (Rate] dated 13,10. 2017 inserted a new entry as Sl. No. 9C in Notification No. 12/2017- Central Tax (Rate] dated 28.06. 2017; which reads as follows; SI.No Chapter, Section or Heading Description of Service Rate (%) Condition 9C Chapter 99 Supply of service by a Government Entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants. Nil Nil 7.14, The conditions to be satisfied for exemption under the above entry are; a) The supply should be a supply of service; b) The supplier should be a government Entity. c) The recipient must be Central Government, State Government, Union territory, local authority or any -person specified by Central Government,; State Government, Union territory or local authority; and d) The consideration must be received in the form of grants from Central Gove....
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....eration for the services are received by the applicant in the form of grants from the Central Government. Therefore, the 4th condition is not satisfied and accordingly the service provided by the applicant to the Indian Navy as per MoU dated 22.02.2019 is not eligible for exemption under the entry at Si No. 9C of Notification No. 12/2017 CT (Rate) dated 28.06.2017 as inserted by Notification No. 32/2017-CT (Rate) dated 13.10.2017. 7.19. The third question raised by the applicant is whether they are eligible to take the benefit of the reduced rate of 12% GST as per Notification No 24/2017-Central Tax (Rate) dated 21.09.2017, in respect of the services provided by it to Indian Navy under the MoU. 7.20. SI. No. 3 (vi) of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as substituted by Notification Nos, 24/2017 Central Tax (Rate) dated 21. 09.2017 reads as follows; "(vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of ,- (a) a civil s....
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.... that the services provided by the applicant is works contract services as defined in section 2 (119) of the CGST Act, 2017 and it is provided to the Indian Navy, the Central Government for the purpose of reconstruction of North Jetty after demolition of existing Jetty at Naval Base, Kochi. Therefore, the works contract services are provided to the Central Government for construction and commissioning of jetty meant for use for undertaking activities of the Indian Navy as a public authority. Hence the services provided by the applicant as per the MoU dated 22.02.2019 are eligible for the concessional rate of GST of 12 % [6% - CG ST + 5% SGST] as per the entry at Item (vi) of SI No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended. However, it is seen that the entry at Item (vi) of SI No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28,06.2017 as amended has been omitted by Notification No, 03/2022 Central Tax (Rate) dated 13.07.2022 with effect from 18,07,2022. Therefore, the concessional rate of GST of 12% is applicable only in respect of the services supplied as per the said MoU for which the time of supply as determined in terms of Sections ....