TaxTMI 
TaxTMI 
2024 (3) TMI 258
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....x applicable for works contract awarded by M/S. Kerala State Film Development Corporation Ltd. (promoted by Government of Kerala) for the development and construction of Sree Narayana Guru Cultural Complex at Kollam. 4. Contentions of the Applicant: 4.1. The applicant is registered under the GST Act and is engaged in providing construction services including supply of materials (Composite contract) and labour contract. The applicant filed this advance ruling application for clarifying the applicable rate of tax in connection with a works contract awarded by M/s Kerala State Film Development Corporation Ltd. 4.2. The applicant submitted that they entered into an agreement with M/S. Kerala State Film Development Corporation Ltd vide agreement No. KSFDC/KIIFB/2019/Agreement 2, Dated. 18.12.2019 for development and construction of Sree Narayana Guru Cultural Complex at Kollam. The contract includes construction service along with supply of materials. The applicant contended that the said work is falling under service to the State Government category. 4.3. The applicant further submitted that, as per Notification No. 24/2017- Central Tax (Rate) Dated 21.09.2017, service prov....
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....materials and labour for executing works. The question that arises for consideration is the applicability of tax rate in respect of a specific works contract awarded by M/s. Kerala State Film Development Corporation Ltd for development and construction of Sree Narayana Gura Cultural Complex at Kollam. 7.3. The applicant was selected to execute the work by the awarder, M/s. Kerala State Film Development Corporation Ltd through a tender process. Thereafter they executed a mutual agreement on 18.12.2019 as per No. KSFDC/KIIFB/2019/ Agreement 2, in which the contractor has certain obligations that are specifically mentioned in the agreement. One of the important parts of the agreement is the conditions specified as per serial No. 4; "The following documents shall be deemed to form and be read and construed as part of this Agreement, viz:- i) Letter of acceptance (reference number 674/P1/19/KSFDC, dated 14th November 2019) ii) Notice to proceed with the works iii) Contractors bid iv) Contract data v) Conditions of contract (including special conditions of contract, general conditions, instruction to bidder and pre-qualification in....
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....td squarely falls under the definition of works contract in Section 2 (119) of the CGST Act, 2017 and the same will be treated as supply of service. 7.9. Now it is to be decided whether the works contract services rendered by the applicant attract GST at the rate of 12% under SI No. 3 (vi) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017. SI No. 3 (vi) of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification Nos. 24/2017 - Central Tax (Rate) dated 21.09.2017; 31/2017 CT (Rate) dated 13.10.2017; 46/2017 CT (Rate) dated 14.11.2017; 17/2018 CT (Rate) dated 26.07.2018 and 03/2019 CT (Rate) dated 29.03.2019 reads as follows: "(vi) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above 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, or alteration of- (a) a ci....
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....ng those in relation to the matters listed in the Eleventh schedule." 7.13. The functions entrusted to a Panchayat under the Eleventh Schedule of the Constitution are as under:- 1. Agriculture, including agricultural extension. 2. Land Improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor Irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, Village and Cottage industries. 10. Rural housing. 11. Drinking Water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal ....
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.... of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time. Hence the concessional rate of 12% [6% CGST+6% SGST] will not be applicable with effect from 01.01.2022. As such, with effect from 01.01.2022, by virtue of SI. No. 3 (xii) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time, the rate of tax for the aforementioned construction service will be 18% [9% CGST+9% SGST]. 7.17. As per sub-section (1) of Section 13 of the CGST Act, 2017, the liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of the said section. However, where there is a change in the rate of tax in respect df goods or services or both, the time of supply shall be determined in accordance with the provisions of Section 14 of the CGST Act, 2017. 7.18. Section 14 of the CGST Act, 2017 reads as follows; "Notwithstanding anything contained in section 12 or section 13, the time of supply, where there is a change in the rate of tax in respect of goods or services or both, shall be determined in the following manner, namely (a) in case the goods or s....