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TMI Blog2019 (11) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... CL. Needless to mention that such work shall not qualify for exemption as envisaged under Sr.No.3(vi) to the Notification no. 11/2017-CT(Rate), in as much as it does not fall within the scope of work entrusted by Government of Madhya Pradesh to MPPGCL. The work entrusted vide subject tender document/contract awarded to the Applicant by MPPGCL cannot be termed as composite supply and thus entire work under the said contract shall not be entitled to concessional rate in terms of Notification No.11/2017-CT(R) dtd.28.06.2017 - Also, the supply of goods and/or services which squarely fall within the ambit of scope of work entrusted to MPPGCL by the Government of Madhya Pradesh shall be entitled for concessional rate under Sr.No.3(vi) to Notification No.11/2017-CT(R). Accordingly, each and every supply under the subject contract shall be treated separately for determining the rate of tax under the CGST Act 2017 read with the provisions of GST Tariff and respective exemption notifications. Thus, the tender document in question is a not consolidated contract and each supply under the said contract shall be chargeable to tax individually, depending upon the individual classification o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the work done. 6. RECORD OF PERSONAL HEARING: 6.1 Shree Sunil P Jain, CA of the applicant for personal hearing. He reiterated submissions already made in the application. The Applicant in support of his contention gives following argument - 6.2 M/s Kalyan Toll Infra Ltd (KTIL), is a company registered under The Companies Act, has taken work under e-tender process by MP Power Generating Company Ltd (MPPGCL) for Balance General Civil and Related Electrical And Mechanical Works Package For 2X660 MW Shree Singaji Thermal Power Project (SSTPP) Stage - II Near Village Dongalia, Distt. Khandwa, Madhya Pradesh. India , as per the scope of work mentioned hereunder. 6.3 Scope of work : All civil, structural and architectural work of O M service building , O M building for services circle, 6 weigh-bridge for existing silos in the plant area, Fitness centre cum Gym, water supply pipe lines etc. It further includes electrical work to O M Building, O M building for services circle weighbridge control room. (Detailed list of works as per tender document) 6.4 Tender is called for consolidated work. Though bid is filed with value of indivi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned supply is a composite supply which is being supplied to a Government entity viz. MP Power Generating Company Ltd., and accordingly the same would merit entitlement for concessional rate of GST @12% [CGST @6% + SGST @6%] in terms of Serial Number 3(vi) of Notification No.11/2017-Central Tax (Rate) dtd.28.06.2017 (as amended). 7.5. We have given a careful consideration to the arguments adduced by the applicant and the counsel. We find that the relevant tender document is consolidated contract entrusted to the applicant, but it has specific details of all the work to be executed under such contract and moreover, the document mentions specific remunerations for each such work. Having said that, we also observe that there are a number of works entrusted to the bidder (the applicant), through this work order. Hence, we are unable to subscribe to the views of the applicant that the supply of services and goods encompassed in the subject work order/contract are naturally bundled. Mere fact that a number of tasks have been entrusted to the applicant through a single document would not make it entitled to be categorised as composite supply particularly in terms of Section 2(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed 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. 5.4. We find in the Application itself that MPPGCL has been established by the Government of Madhya Pradesh and the Government of Madhya Pradesh has a 100% shareholding in the company. The State Government is also exercising full control over the activities of the said company. Needless to say that in the given circumstances M/s.MPPGCL qualifies to be called and termed as a Government Entity for the purpose of GST law, as it fulfils the necessary and sufficient conditions laid down under notification supra. It therefore leaves no doubt that MPPGCL is a Government Entity for the purpose of provisions of CGST Act 2017 and MPGST Act 2017. 7.7 We observe that the entry no.3(vi) to the Notification No.11/2017-CT(R) covers a wide spectrum of Construction Services as composite supply. To be more specific the entry covers: (vi) 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 ..... 17-CT(Rate) dtd.28.06.2017. 7.10. In view of the discussions foregoing, we are inclined to hold that the work entrusted vide subject tender document/contract awarded to the Applicant by MPPGCL cannot be termed as composite supply and thus entire work under the said contract shall not be entitled to concessional rate in terms of Notification No.11/2017-CT(R) dtd.28.06.2017. However, we also hold that the supply of goods and/or services which squarely fall within the ambit of scope of work entrusted to MPPGCL by the Government of Madhya Pradesh shall be entitled for concessional rate under Sr.No.3(vi) to Notification No.11/2017-CT(R). Accordingly, each and every supply under the subject contract shall be treated separately for determining the rate of tax under the CGST Act 2017 read with the provisions of GST Tariff and respective exemption notifications. RULING (Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017) 8.1 The tender document in question is a not consolidated contract and each supply under the said contract shall be chargeable to tax individually, depending upon the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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