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TMI Blog2021 (3) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of specified construction services supplied to the Central Government, State Government, Governmental Authority, Government entity etc. - Sl.No. 3 (vi) (a) is the relevant entry to the present issue which prescribes GST rate of 12% (6% CGST + 6% SGST)in r/o services 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 civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession. Thus to attract rate of tax @12% under Sl. No. 3(vi)(a), the specified service should primarily be provided to the Central Government/State Government/Union Territory/Local authority/Government Authority/ Government Entity and must be used for other than commercial, industrial, or any other business or professional activity. Whether the Contractee in the instant case i.e. M/s. TSSPDCL falls under the specified categories of recipients viz., Central Government/State Government/Union Territory/local ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of ₹ 5,000/- for SGST and ₹ 5000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted 4. Brief facts of the case: The facts, in brief, that were reported by the tax payer in their application are as follows: a. The applicant is a Company registered under the Indian Companies Act, 1956. It is engaged is the business of execution of works contracts as defined under sec. 2(119) of the GST Acts, 2017. It is a registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee is of this kind? 4. In respect of HVDS to Agriculture Section, the State Government reimburses the money for agriculture service (i.e.. reimbursement to TSSPDCL (Electricity Consumption)-In this situation, whether the supply by the applicant would amount to a supply to Govt/Govt. Agency/Entity? 5. Whether TSSPDCL falls under the definition of Government Authority/ Government Entity as defined in Notification No. 31/13-10-2017 Central Tax (Rate) and other connected Notifications? 6. What is the applicable rate of tax on the works executed to TSSPDCL mentioned in above? On Verification of basic information of the applicant, it is observed that the applicant falls under State Jurisdiction, i.e. Deputy Commissioner (State Tax)- STU-1, Hyderabad Rural Division. Accordingly, the application has been forwarded to the jurisdictional officer to offer their remarks as per the Section 98(1) of TSGST Act, 2017. The opinion of the jurisdictional authority is as under: As per Not. No. 31/2017 Central Tax (Rate), dated 13.10.2017 issued under CGST Act, 2017, the Government Entity is defined as under : Government Entity Means an authority or a board or any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Raghu Kiran, IRS, Joint Commissioner(Central Tax) as member in place of Sri V. Srinivas, IRS, Additional Commissioner(Central Tax). Hence another notice was issued to the applicant to appear for Personnel Hearing on 20.01.2020. Authorised representative Sri. D. Dastagiri, Accountant appeared and reiterated the submissions already made in the application. 8. Discussion Findings: We have examined the issues raised in the application. To answer the queries raised by the applicant, a reference is to be made to entry No. 3 (vi) of the Notification No. 11/2017 CGST, dt. 28-06-2017 amended by Not. Nos. 20/2017-CT(R) dated 22.08.2017, 24/2017-CT (R) dated 21.09.2017 and Not. No. 31/2017-CT (R) dated 13.10.2017 etc. which prescribes rate of tax in respect of specified construction services supplied to the Central Government, State Government, Governmental Authority, Government entity etc. The extract of the said entry is reproduced below: Sl.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition 3 Heading 9954 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slature; or ii) Established by any Government, with 90 percent 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. We notice from the schedule concerning Shareholding of Promoter of the annual accounts of M/s TSSPDCL that 100% shares of the company were held by the Hon ble Governor of Telangana. This clear indicates that the Government of Telangana have 100 percent control over TSSPDCL and thus TSSPDCL is evidently covered under the definition of Government Entity . The next issue to be decided in this regard is whether the impugned services supplied by the applicant are for the works which are used for other than commerce, industry, or any other business or profession. As per the details furnished by the applicant in the Annexure II enclosed to the application, the works undertaken are for execution/implementation of various projects for (i) Capacitor Bank Works in Nalgonda etc.; (ii) HVDS-High Voltage Distribution Systems in Suryapet used for agricultural feeders. The applicant further stated that the Government of Telangana is reimbursing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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