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TMI Blog2019 (11) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the aforesaid service as a main contractor or the rate of tax specified in Entry SI No. 3 (ix) of 11/2017 -Central Tax (Rate) as amended till date is applicable as a sub-contractor 2. If the rate of tax specified in Entry SI No 3 (vi) (a) or SI No. 3(ix) is not applicable, could you please elaborate on the reasons for non applicability and which is the entry of the notification to determined the applicable rate? 3. If the aforesaid notification itself is not applicable, then under which service the activity has to be taxed and at what rate? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant is engaged in works contract such as design, erection, testing, commissioning, including pre-commissioning activities in relation to or incidental to installation of transformer of various capacity and providing electrical infrastructures by extending 11 KV high transmission lines and Low transmission lines. b. The applicant undertook turnkey projects for supply, erection, testing, commissioning of transmission of 11 KV HT/LT lines and also engaged in erection of 25 KVA transformers for Chamundeshwari Electrical Supply Company Limited (CESC) / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ruling is in relation to service provided by M/s TPL to Jaipur Development Authority. The Ruling adjudged that JDA is a government entity. The contract works was related to correction and strengthening of the channel for better performance and also for the construction of sewage treatment plant. Therefore it attracts CGST tax rate 6 percent and SGST tax rate 6 percent each, based on the entry no 3 (vi) (a) of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017 as amended by the Notification No. 24 /2017 -Central Tax (Rate ) dated 21-09-2017. 7. FINDINGS & DISCUSSION: 7.1 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by the duly authorized representative during the personal hearing. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. 7.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. 6 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a road, bridge, tunnel, or terminal for road transporta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Urban Poverty Alleviation, Government of India; (d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under- (1) the "Affordable Housing in Partnership" component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (da) low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017; (e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. 6 - (vi) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided to the Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in item (iii)or item (vi) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. 6 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. (x) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item (vii) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. 2.5 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. (xi) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try, or any other business or profession. 7.10 The applicant has enclosed a copy of the contract agreement with Chamundeshwari Electricity Supply Corporation Ltd. The Memorandum of Association of Chamundeshwari Electricity Supply Corporation Ltd has also been submitted by the applicant. This Memorandum shows that the Governor of Karnataka, through the Additional Chief Secretary holds more than 90% of the equity in the Corporation. (a) Therefore Chamundeshwari Electricity Supply Corporation Ltd qualifies to be considered as a Government Entity as defined in Explanation (x) to Notification No. 11/2017 - Central Tax (Rate) dated 28-06-2017. Therefore the first condition as enumerated at Para 7.9(a) is satisfied. (b) The second condition is that the work should be predominantly for use other than for commerce, industry, or any other business or profession. In this context we once again examine the Memorandum of Association of Chamundeshwari Electricity Supply Corporation Ltd, the recipient of the supply made by the applicant. The main objects outlined in the Memorandum read as follows: 1. To carry on the business of distribution and supply of electricity in the State of Karnatak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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