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TMI Blog2019 (11) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... ority or a Government Entity? - HELD THAT:- Kerala State Electricity Board Ltd; is a Government Company incorporated under the Companies Act, 1956 with 90 per cent or more participation by way of equity or control of the Government of Kerala to carry out the business of generation, transmission and distribution of electricity in the State of Kerala and is a State Transmission Utility within the meaning of Section 2 (67) of the Electricity Act, 2003. Hence, Kerala State Electricity Board Ltd could not be considered as constituted/established by the Government of Kerala to carry out any function entrusted to a municipality under article 243W or a panchayat under article 243G of the Constitution. Therefore, Kerala State Electricity Board Ltd will not come under the definition of Governmental Authority under Para 2(zf) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. However, Kerala State Electricity Board Ltd squarely falls under the definition of Government Entity under Para 2 (zfa) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. - KER/64/2019 - - - Dated:- 12-10-2019 - SHRI. B.G. KRISHNAN, IRS SHRI. B.S. THYAGARAJABABU B.SC, LL.M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Authority or a Government entity. (iii) Supply shall be by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession. Since the above work order fulfilled all the conditions as prescribed the execution of the works contract to Kerala State Electricity Board Ltd attract 12% GST. The matter was examined in detail. The matter to be considered is; (i) Whether the execution of the civil works of Pazhassi Sagar Small Hydro Electric project awarded by Kerala State Electricity Board Ltd would fall under Sl.No.3 (iii) (b) or 3(vi) of Notification No.11/2017 Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 12%? (ii) Whether Kerala State Electricity Board Ltd will fall under any of the categories namely; Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity? Sl No.3 (iii) of Notification No.11/2017 Central Tax (Rate) dated 28.06. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution. As per Para 2 (zfa) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 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 ninety 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. Kerala State Electricity Board Ltd is a company incorporated under the Companies Act, 1956 by the Government of Kerala for carrying out the business of Generation, Transmission and Distribution of electricity in the State of Kerala. It is the successor entity of the Kerala State, Electricity Board which was constituted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2017. The concessional rate of GST of 12% under Sl No. 3 (vi) (a) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 is applicable only for composite supply of works contracts as defined in clause (119) of Section 2 of the CGST Act, 2017 supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession. The concessional rate under this entry is not applicable for the works contract services provided as per the above work order as Kerala State Electricity Board Ltd has been established for carrying out the business of generation, transmission and distribution of electricity in the State of Kerala on commercial principles as is evident from the provisions of Sections 61 and 62 of the Electricity Act, 2003 regarding tariff regulation and determination of tariff. Therefore, the supply of works contract services as per the above work order cannot be considered as meant predominantly for use other than for commerce, industry, o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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