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TMI Blog2020 (12) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... mention of individual works to be carried out by them with specific remuneration for each such work. Hence, it is a supply having distinctly identifiable components with distinct value attributable to each of the components - Mere fact that a number of tasks have been entrusted to the applicant would not make it entitled to be categorized as composite supply particularly in terms of Section 2(30) of the CGST Act, 2017. Legal status of IIT, Bhubaneswar - Governmental Authority or a Government Entity ? - HELD THAT:- Government of India, Ministry of Human Resource Development is exercising full control over the activities of IITs all over the country. Needless to say that in the given circumstances IIT, Bhubaneswar 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 No. 11/2017-C.T. (R). It therefore leaves no doubt that IIT, Bhubaneswar is a Government Entity for the purpose of provisions of CGST Act, 2017 and OGST Act, 2017. Sr. No. 3(vi) to the Notification No. 11/2017-C.T. (Rate) - HELD THAT:- The applicant has been engaged as a PMC to execute the contract for carryi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould attract GST @ 18%. Thus, the supply of goods and/or services or both which squarely fall within the ambit of scope of work entrusted to IIT, Bhubaneswar by Government of India shall be entitled for concessional rate under Sr. No. 3(vi) to Notification No. 11/2017-C.T. (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. - SRI HRUSHIKESH MISHRA, AND SRI GOPAL KRISHNA PATI, IRS, MEMBER Present for the Applicant : Amrit Aaron Mohanty, CA Tarun Kumar Agarwalla, CA Subject : M/s NBCC (INDIA) Limited, Plot No. G/1, NBCC Imperia, New Govt Colony, Press Chhak, Bhubaneswar, Odisha-751017 (herein after referred to as the Applicant ) having a GSTIN : 21AAACN3053B1ZC, is a company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the OGST Act, 2017 in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the SGST Act. 1.0 The Applicant having assigned with GSTIN number 21AAACN3053B1ZC sought for an advance ruling in respect of the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant, while filing the application for seeking advance ruling, explained the facts, cited various judicial pronouncements in support of its submission. It was submitted that the applicant has entered into Agreement with Indian Institute of Technology, Bhubaneswar for Project Management Consultancy (PMC) works. The scope of the work as per the agreement includes ; (not limited to) providing and laying Sewerage STP for residential cum academic campus, 800 seater boys hostel, 200 seater girls hostel, Construction of lecture hall complex, Construction of Student Activity Centre, Dispensary, Construction of 1000 capacity Auditorium, Construction of Directors Bunglow, 40 nos. staff Quarters, 84 nos Faculty Quarters, Construction of Central Research Instrumentation facilities, Construction of Central Workshop, Landscaping and allied works for academic area, construction of water works, Roof top solar PV power plants, Play grounds, Electricity, Substation DG set and fire safety measures etc 2.1 It was also submitted that the applicant shall carry out surveying and soil investigation of the plot of IIT BBS. The applicant shall finalize the Architectural Plans with the approval of II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate), dated 28-6-2017. We, therefore observe that the issue before us is squarely covered under Section 97(2) of the CGST Act, 2017 and therefore we admit the application for consideration. 4.1 It has been argued by the applicant, through the written submission and also at the time of personal hearing, that the impugned supply is a composite supply of works contract service which is being supplied to IIT, Bhubaneswar a Government entity / Governmental Authority /Government and accordingly the same would merit entitlement for concessional rate of GST @ 12% [CGST @ 6% + SGST @ 6%] in terms of Serial Number 3(vi) (a) (b) of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 (as amended). 4.2 We have given a careful consideration to the arguments adduced by the applicant and the counsel. We observe that there are number of works entrusted to the applicant under a single contract/agreement made on 02.05.2016. We also find that IIT, Bhubaneswar has engaged the applicant as a Project Management Consultant . In order to execute the project, the applicant has engaged contractors through different competitive tender process. The applicant has awarded different types of works to va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the given circumstances IIT, Bhubaneswar 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 IIT, Bhubaneswar is a Government Entity for the purpose of provisions of CGST Act, 2017 and OGST Act, 2017. 4.5 We observe that the Entry No. 3(vi) to the Notification No. 11/2017-C.T. (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 Services Act, 2017, provided to the Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Government Entity by way of Construction, erection, commissioning, installation, completion, fitting out, repair maintenance, renovation or alteration of - (a) a civil structure or any other original work meant predominantly for use other than for commerce, industry or any other business or profession; (b) a structure meant predominantly for use as (i) and educational, (ii) a clinical or (iii) an art o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction of water works are covered vide SI No. (iii) (c) to the said notification and merit exemption where the applicable tax rate is 12% (6% under CGST 6% under OGST Act, 2017). 4.9 Now coming to the issue of construction of Directors Bungalow and construction of staff/faculty quarters. We see that the applicant has been awarded construction of Directors Bungalow, 40 nos. staff Quarters, 84 nos Faculty Quarters in the IIT Campus, Bhubaneswar. We also observe that the civil construction of residential quarters is not the primary work entrusted to IIT, Bhubaneswar. Accordingly, we fail to understand as to why the benefit of concessional rate @ 12% GST should be available to this particular works contract awarded to the applicant? The intention of the Legislature has been to allow concessional rate to such work which has been entrusted to a Government entity for public interest in general, but extrapolating and extending this concessional rate to any or all activities of IIT, Bhubaneswar will not only be unwarranted but also defeat the very purpose of concessional rate. Hence, we hold that construction of Directors Bungalow and construction of staff/faculty quarters is out of pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try 3(vi)(b), in the facts and circumstances of the Applicant company, then whether it would be covered under 3(vi)(a) of the said notification as the construction work is predominantly for use other than for commerce, industry or any other business of profession. Ans : Replied at para 4.10 5. Alternatively, whether the construction services related to sewerage project falls under clause (iii) of serial no 3 (classification code 9954) of the table in the Notification No. 11/2017-Central Tax(Rate) dated the 28th June, 2017. Ans : Yes. 6. Or otherwise if the works contract service is not covered under clause (vi) or clause (iii) of entry 3 of the aforesaid notification, in the facts and circumstances of the Applicant company, then what will be applicable clause under entry no. 3 and what would be the rate of GST? Ans : Replied at 4.2, 4.6 to 4.10 6.0 This ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act. 7.0 The applicant or jurisdictional officer, if aggrieved by the ruling given above, may appeal to the Odisha State Appellate Authority for advance ruling under Section 100 of the CGST/OGST Act, 2017 wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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