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TMI Blog2019 (1) TMI 1670X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3 of the table of notification No. 11/2017 - Central Tax (Rate), Dated - 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% (9% under Central tax and 9% State tax). However, funding by the World Bank to either Government of Andhra Pradesh or to the Contractee i.e. APSPDCL has no bearing on the rate of tax. Whether exemption under SI.No. 10A of Notification no. 12/2017-Central Tax (Rate), dated 28.06.2017, amended by notification no. 14/2018-Central Tax (Rate), dated 26.07.2018 is applicable to their works? - HELD THAT:- The said entry clearly states that the services supplied by Electricity Distribution Utilities attract nil rate of tax. Whereas, the said entry do not prescribe any nil rate for the services supplied to the Electricity Distribution Utilities. Therefore, the said exemption is not applicable to the services rendered by the applicant to the Contractee. Since the works undertaken are classifiable under works contract service, segregation or vivisection will not arise. However, as the said exemption is not applicable to the said works contract, this query and also the queries on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Adoni Division of Kurnool District under the World Bank Funding on turnkey basis 03/2017- 18 24.06.2017 Design, manufacture, test, deliver, install, complete and commission facilities for conversion of existing LT Net Work into High Voltage Distribution System in Anantapur Division of Anantapur District under the World Bank Funding on turnkey basis 04/2017- 18 24.06.2017 Design, manufacture, test, deliver, install, complete and commission facilities for conversion of existing LT Net Work into High Voltage Distribution System in Gooty Division of Anantapur District under the World Bank Funding on turnkey basis 08/2017- 18 24.06.2017 Design, manufacture, test, deliver, install, complete and commission facilities for conversion of existing LT Net Work into High Voltage Distribution System in Nandyal Division of Kurnool District under the World Bank Funding on turnkey basis 16/2016- 17 29.08.16 System improvement Project works for conversion of LT net work into HVDS in Gudur II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltural services up to Bore well / well / water source by installing smaller transformers of 16KVA/25KVA/40KVA, Poles, erecting conductor, Cable and other related material to give supply at motor point. All the said works involves composite supply of material, labour and services roughly with the ratio of 80% and 20% respectively. No separate agreements were entered for supply of material, labour and services but, separate price schedule were issued by the APSPDCL, for supply of material and labour and other services, the applicant is paying tax at 18% (9% CGST + 9% SGST) on the amounts received from APSPDCL, on composite supply of material, labour and other services, treating the activity falling under service code of 995423. However, the applicant is claiming Input Tax Credit on inward supplies of material, and services for use in the execution of works awarded by APSPDCL. 4. QUESTION RAISED BEFORE THE AUTHORITY: The applicant seeks advance ruling on the following by referring the Notification No.12/2017-Central Tax (Rate), dated 28.06.2017 as amended by Notification No. 14/2018-Central Tax (Rate), dated 26.07.2018 inserting a new entry 10A;- 1) As APSPDCL, being a reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein 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 as defined at clause (119) of Section 2 of CGST Act 2017 and APGST Act, 2017 is treated as supply of service in terms of Serial No.6, Schedule II of CGST Act 2017 and APGST Act, 2017. The works executed by the applicant in this case included design, manufacture, test, deliver, install, complete and commission facilities for conversion of existing LT Net Work into High Voltage Distribution System in various districts of Andhra Pradesh the World Bank Funding on turnkey basis. As seen from the nature of the work stated by the applicant, the works are industrial in nature as it involves conversion of existing LT network into High Voltage Distribution System. In the instant case, the contract entered by the applicant squarely falls under the works contract and falls under entry no. (ii) of S. No. 3 of the table of notification No. 11/2017 - Central Tax (Rate), Dated - 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% (9% under Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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