TaxTMI 
TaxTMI 
2026 (9) TMI 1263
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....2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like manner except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the above, henceforth, for the purposes of these proceedings, the expression "GST Act" would mean both the CGST Act and the WBGST Act. 1.2 The applicant, Jaypee Projects Limited, is engaged in the business of execution of civil works contracts and is registered under the Goods and Services Tax law as a works contractor. The applicant has been awarded two works contracts by the Indian Institute of Technology, Kharagpur for setting up a new main water pipeline for the upcoming South East Campus and for revamping the water pipeline distribution network in the hall area. The execution of the said works involves supply of both goods and services, with the material component constituting....
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....k and result in the creation of immovable property. Accordingly, the Applicant has treated the activity as a composite works contract service and has been discharging GST at the rate of 18 percent (9 percent CGST and 9 percent SGST) by classifying the supply under SAC 995479. 2.2 The Applicant submits that in determining the appropriate classification and applicable rate of GST, reliance has been placed upon Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time up to Notification No. 15/2025-Central Tax (Rate) dated 17.09.2025. According to the Applicant, the said notification prescribes the rate of tax applicable to composite works contract services falling under SAC 9954. The Applicant submits that composite works contract services involving predominantly earthwork, where the value of earthwork constitutes more than 75 percent of the contract value and supplied to the Central Government, State Government, Union Territory or Local Authority, are taxable at the rate of 18 percent (9 percent CGST and 9 percent SGST). On the basis of the said notification, the Applicant has adopted the rate of 18 percent for the present contracts executed for t....
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....erefore requests this Authority to examine the terms and conditions of the work orders, the nature of execution of the contract and the applicable statutory notifications for determining the correct Service Accounting Code and the applicable rate of GST under the provisions of the Central Goods and Services Tax Act, 2017 and the rules framed thereunder. 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the merit of the issue raised by the applicant. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representatives of the applicant during personal hearing. The Revenue has not expressed any view in respect of the issues raised in the application. 4.2 As per the facts submitted before us, the applicant is a civil contractor and registered in the GST portal with works contract as the nature of business. The applicant has received work order from Indian Institute of Technology Kharagpur (in short IIT Kharagpur). The work order is related to setting up a new main water pipeline for the upcoming South East Campus of the institute and ....
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....nry chamber, dismantling of C.I. pipes and different kinds of valves, cutting holes in walls, floors and roofs for installation of drain pipes, providing and placing of water storage tanks on terrace. The first work order also includes, among other things, the supply of C.I. sluice valves, ductile iron pipes, PVC pipes, ball cocks, parts and accessories of water storage tanks, brass ferrule, gate valve, etc. The whole work indicates revamping of water pipeline distribution network involving both labour works and materials. The goods used in the execution of the work order will become part of immovable property. On the other hand, the scope of works in respect of the second work order issued by IIT Kharagpur indicates the same kind of work as above. It also involves both labour works and materials to be supplied to IIT Kharagpur. Section 2(119) of the CGST Act, 2017 defines Works Contract as a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form)....
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....nction entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 3B Chapter 99 Services provided to a Governmental Authority by way of - (a) water supply; (b) public health; (c) sanitation conservancy; (d) solid waste management; and (e) slum improvement and upgradation. Nil Nil 4.8 For inclusion into item no. 3 as above, the following conditions should be satisfied simultaneously: A. The services must be pure service excluding works contract service or other composite supplies involving supply of any goo....
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.... b) public health c) sanitation conservancy d) solid waste management e) slum improvement and upgradation To begin with, we must define services. Section 2(102) of the CGST Act, 2017 defines services as under: (102) "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; [Explanation- For the removal of doubts, it is hereby clarified that the expression "services" includes facilitating or arranging transactions in securities;] By virtue of the above definition, goods is excluded from the scope of services. However, in Schedule II appended to the CGST Act, 2017, certain activities are treated as supply of services. In clause 6 of the referred Schedule, two kinds of composite supplies are considered as supply of services. In item (a) of clause 6 refers to works contract as defined in clause (119) of Section 2 of the Act. Thus, works contract is to be treated as supply of service for the pu....
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.... Indian Parliament. Later on, all the Indian Institutes of Technology came under the ambit of the Institutes of Technology Act, 1961 (Act 59 of 1961) passed by the Indian Parliament. In Section 4 of the Indian Institute of Technology (Kharagpur) Act, 1956, the institute has been declared a body corporate. So, in our considered view, the IIT Kharagpur is a Governmental Authority as defined in clause (zf) of Paragraph (2) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 4.12 The third condition is that the supply of service must be by way of a) water supply, b) public health, c) sanitation conservancy, d) solid waste management and e) slum improvement and upgradation. Evidently, the supply of service is restricted to the above five areas. Here we must throw some analytical light on the phrase 'by way of'. If we carefully look at the descriptions of item no. 3 and 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, we must appreciate that the pure services and the composite supply of goods and services referred to in the items respectively are to be supplied by way of any activity in relation to any function entrusted to a Panchayat under Article ....