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TMI Blog2019 (10) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... only four members appointed by the Government and hence the government does not have more than 90% control over it. One more important point to note is that this institute is not established to carry out a function entrusted by the Government. Hence, for all these reasons, NCBS is not covered under the definition of a Government Entity as per the clause (x) of paragraph 4 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017. The service supplied by the applicant is not covered under clause (vi) of Serial No.3 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time and hence is not taxable at 6% CGST and 6% KGST. And it is taxable at 9% CGST and 9% KGST under the residual item no. (xii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ories and associated facilities at NCBS Campus in Bangalore. b. The National Centre for Biological Sciences (hereinafter referred to as NCBS ) began as a separate centre of Tata Institute of Fundamental Research (hereinafter referred to as TIFR) which receives grants from the Department of Atomic Energy, Government of India. The applicant states that the idea that TIFR should start a Centre for Biological Research following a suggestion by the then Director of Indian Institute of Science, Bangalore and that joint TIFR-IISc Centre could be located on the IISc Campus. In 1984, the Planning Commission of Government of India agreed to fund a centre for fundamental research in biological sciences at Bangalore and the centre was to fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractee is not covered under Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 and hence the residual rate of 18% would be applicable. e. However, the contractee, i.e. NCBS, is of the opinion that since it is a fully funded aided institute administratively controlled by the Department of Atomic Energy (DAE), Government of India and the activities of NCBS are related to the educational research , 12% rate is applicable as per the entry no. (vi) of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No.24/2017 -Central Tax (Rate) dated 21.09.2017 which reads as under: Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act service as per the clause (119) of Section 2 of the Central Goods and Services Tax Act, 2017. 5.3 Coming to the issue about the nature of the organisation covering NCBS , it is seen that the NCBS has obtained registration under the GST Act as a Trust with GSTIN 29AAATT3951F1ZC and the Council managing this organisation has three members appointed by the Government of India, one member appointed by the Government of Maharashtra, two members appointed by the Trustees of Sir Dorabji Tata Trust, the Director of the Institute (NCBS) is an ex-officio member and one co-opted member appointed by the Council. Hence four members are from the Government. 5.4 The issue is whether the NCBS is covered under any one of the categories ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (x) 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, with 90 per cent, or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority 5.7 The applicant have themselves stated that the NCBS began as a separate centre of TIFR in 1992, first in the Molecular Biology Unit at TIFR in Bombay, and then at the IISc Campus in Bangalore where its laboratories are established. The Government of India has agreed to fund the institute and the institut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 9% KGST under the residual item no. (xii) of Serial No.3 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time 6. In view of the foregoing, we rule as follows RULING The works contract service provided by the applicant to NCBS, for the reasons stated above, is liable to tax at: (a) 9% CGST as it is covered under item no. (xii) of Serial No.3 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended from time to time under the CGST Act and (b) 9% KGST as it is covered under item no. (xii) of Serial No.3 of Notification 11/2017 No. FD 48 CSL 2017 dated 29.06.2017 as amended from time to time under the KGST Act - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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