9911796707
TMI Blog2019 (11) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... red to as applicant), registered under the Goods & Services Tax. 2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 1. Brief Facts of the case: M/s. R Gangaiah & Co, (hereinafter referred to as the Applicant) having its office at 108-B, Sri Nilaya Apartment Opp. Layola Auditorium, Venkateswara Nagar, Vijayawada, is a registered partnership firm, under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant. 2. QUESTION RAISED BEFORE THE AUTHORITY: The applicant sought for Advance Ruling on applicable rate of tax under GST for construction of office building at Vijayawada for Andhra Pradesh State Financial Corporation. 3. APPLICANT'S INTERPRETATION OF LAW AND FACTS: Andhra Pradesh State Financial Corporation is a state level Government Corporation (PSU) established under the SFCs Act, 1951 enacted by the parliament and carrying out the functions as entrusted under the Central Enactment i.e. SFCs Act, 1951. The applicant's plea is that the Corporation comes under the classification of Government Entity for the purpose of GST and the composite works for constructions of the Corporation's office buildings are original works. Besides, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablished by any Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (x) "Governmental 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 a State Legislature; or (ii) established by any Government, with 90% or more participation by way of equity or control, to carry out any function entrusted by the Central Government, State Government, Union Territory or a local authority. Andhra Pradesh State Financial Corporation [APSFC] is a term lending Institution established in 1956 for pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; The composite supply of works contract under Section 2 (119) of CGST Act, 2017 / APGST Act, 2017 is treated as supply of service in terms of Serial No.6 (a) of Schedule II of CGST Act 2017 / APGST Act, 2017. The Government of India, vide notification No. 11/2017 - Central Tax (Rate), dated - 28th June 2017 notified the rate of GST applicable on supply of services. Under this notification for heading 9954 the applicable rate of GST is 9%. The said no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vijayawada for APSFC, which is meant for governance of their Corporation activities. The applicant is of the view that the use of the said construction (building) is not for any business or so. This issue is examined. As seen from the Annual Reports for the years 2015-16, 2016-17 and 2017-18 as made available by APSFC in their website http://www.apsfc.com/pages/financials.aspx, they are engaged in providing financial services to industries and entrepreneurs. The income they are getting is from 'interest on loans and advances' and also service charges, upfront fee/ commitment fee, sale of application forms, profit on sale of assets, Commission on insurance, Rent received etc. Therefore, the activities of M/s. APSFC are business activities a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 13.10.2017.
As the use of the construction / building is for office purpose of M/s. APSFC to conduct their activities which are not other than for commerce, industry, or any other business or profession, the concessional rate of 12% under Notification No. 24/2017-Central Tax (Rate) dated 21.09.2017 read with Notification No. 31/2017 - Central Tax (Rate) dated 13.10.2017 is not available to the applicant.
The activities under the agreement referred by the applicant are classifiable under SAC heading No. 9954 under construction services, they fall under entry no (ii) of serial No. 3 of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 and the applicable rate of tax is 18% (9% Central Tax Plus 9% State Tax). X X X X Extracts X X X X X X X X Extracts X X X X
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