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TMI Blog2019 (11) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, industry, or any other business or profession to be eligible for concessional rate of 12% (6% CGST + 6% SGST) available under Notification No.24/2017 - CT (Rate) dated 21.09.2017. In this case, the contract entered by the applicant is classifiable under SAC heading No. 9954 under construction services, and it falls under entry no (ii) of serial No. 3 of notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 i.e., Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017 and the applicable rate of tax is 18% (9% under Central tax and 9% State tax). - AAR 17/AP/GST/2019 - - - Dated:- 3-4-2019 - D. RAMESH, AND S. NARASIMHA REDDY, MEMBER Represented by: P. Anj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as the Agreement) with Andhra Pradesh State Financial Corporation (hereinafter referred to as M/s. APSFC) for construction of multi storied office building at OHT-2 Plot-LR3, Industrial Park, Jawahar Autonagar, Vijayawada. The applicant in their application filed, while seeking GST rate payable on the activities covered under the said agreement, informed that their customer i.e. M/s. APSFC is established under the SFCs Act, 1951 enacted by the parliament, and as per the Notification No. 31/2017 - Central Tax (Rate), dated 13.10.2017 the corporation falls under the meaning of Government authority and Government entity as well. On Verification of basic information of the applicant, it is observed that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered under the definition of clause (119) of Section 2 of the Central Goods Service Tax Act, 2017; and therefore the applicable rate of GST is 12% ( 6% CGST + 6% SGST) in terms of Notification No.24/2017 - Integrated Tax (Rate), dated 21.09.2017 read with notification Nos. 31/2017 Central Tax (Rate),dated 3.10.2017 and Notification No. 39/2017-Integrated Tax (Rate), dated 13.10.2017. 4. RECORD OF PERSONAL HEARING: Sri P. Anjaneyulu FCA, Authorized Representative of the applicant appeared for Personal Hearing on 01.02.2019 and they reiterated the submission already made in the application. 5. DISCUSSION AND FINDINGS: We have examined the specific issues raised in the application i.e. M/s. APSF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporations Act, 1951. The Corporation came into existence on 1-11-1956 by merger of Andhra State Financial Corporation and Hyderabad State Financial Corporation. The functions of the corporation is to launch entrepreneur friendly schemes to provide term loans, working capital term loans, special and seed capital assistance etc., As seen from the share holding ratios at page no.47 of the Annual Reports for the years 2015-16, 2016-17 and 2017-18 as made available by APSFC website http://www.apsfc.com/pages/financials.aspx, the A.P. State Government is having 85.85% of shares which is less than 90%. However, M/s. APSFC is established by Government and the Government of Andhra Pradesh is having more than 90% of control over the APSF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the following notifications are issued by the Government of India and the said amendment Notifications are as follows - 1) Notification No. 20/2017-Central Tax (Rate), Dated 22/08/2017. 2) Notification No. 24/2017-Central Tax (Rate), Dated 21/09/2017. 3) Notification No. 31/2017-Central Tax (Rate), Dated 13/10/2017. 4) Notification No. 46/2017-Central Tax (Rate), Dated 14/11/2017. 5) Notification No. 01/2018-Central Tax (Rate), Dated 25/01/2018. Vide notification No. 24/2017 Central Tax (Rate), Dated 21/09/2017, Government of India by inserting entry No. (vi) notified concessional GST rate of 6% for the construction services provided to Central Government, State Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the activities of M/s. APSFC are business activities and not otherwise. The applicant informed that the said building is for use as office by M/s. APSFC and therefore, it appears that the said construction is for office use for conducting business activities of M/s. APSFC. Moreover, the applicant did not provide any information or documentary proof evidencing that the construction/ building is for use other than for commerce, industry, or any other business or profession to be eligible for concessional rate of 12% (6% CGST + 6% SGST) available under Notification No.24/2017 - CT (Rate) dated 21.09.2017. In this case, the contract entered by the applicant is classifiable under SAC heading No. 9954 under construction services, and it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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