9911796707
TMI Blog2022 (3) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Government of Telangana qualifies to be a Government entity under the term Government entity . The Memorandum of Association of TSIIC at clause III(a)(3) clearly states that the company pursues the objectives to implement the schemes of incentives, subsidies and the like formulated by the Government of Telangana or Government of India or other authorities or institutions and to administer such schemes of incentives from time to time in the interest of establishments and development of industries. Thus TSIIC organization works to further the policies of the State Government, Central Government and Local Government for development of industries in the State of Telangana. The applicant has executed works contracts for TSIIC which is a Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 5,000/- 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: M/s. Siddhartha Constructions are into business of works contracts and have executed works for Telanga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellip;an authority or a board or any other body including a society, trust, corporation, i) set up by an Act of Parliament or State Legislature; or ii) established by any Government, with 90per cent. 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". Therefore, TSIIC being wholly owned by Government of Telangana qualifies to be a Government entity under this definition. Further, in respect of works contract services provided to a Governmental Entity, the tax rate is 12% as enumerated at Sr No. 3(vi) of Notification No. 11/2017-CT (Rate) as amended till date. "The works contract service by way of construction, erec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entrusted to it by the State Government. Therefore the works contract executed by the applicant for construction of Administrative building for TSIIC falls under Sr No. 3(vi) of Notification No. 11/2017-CT (Rate) as amended till date and therefore taxable at the rate of 6% under CGST & SGST each. However for works executed from 01-01-2022, the rate shall be 9% under CGST & SGST each as the Phrase 'Governmental authority or Governmental entity' is excluded, vide notification Number. 15/2021, dated.18.11.2021. 8. The ruling is given as below: In view of the above discussion, the questions raised by the applicant are clarified as below: Questions Ruling 1. In view of the services provided by the applicant to TSIIC., is the applicant eli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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