9911796707
TMI Blog2022 (5) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Tax (Rate) dated 28.06.2017 for the impugned construction services provided by them to UPRNN. If the impugned service is not covered under Sr. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, then what is the appropriate classification and rate of GST to be charged by the applicant? - HELD THAT:- Since the impugned service is expected to commence only at a future date, in view of the amended Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, the impugned activity is not covered under Sr. No. 3 (vi) mentioned above and therefore the said activity will be covered under the residuary clause (xii) of Sr. No. 3 of Notification No. 11/2017- mentioned above and the rate of GST to be paid by the applicant will be 18% of the taxable value. - GST-ARA-65/2021-22/B-57 - - - Dated:- 4-5-2022 - SHRI. RAJIV MAGOO, AND SHRI. T. R. RAMNANI, MEMBER NO.GST-ARA-65/2021-22/B-57 Mumbai, dt. 04.05.2022 PROCEEDINGS Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The Present application has been filed under Section 97 of the Central Goods and Services Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wned company by the Govt. of Uttar Pradesh and in terms of Si. No. 3 (vi) of Notification 11/2017- CTR dt 28.06.2017, as amended, composite supply of works contract provided to the Central/State Govt, Union Territory, local authority, Governmental Authority or Governmental Entity is eligible for the concessional rate of 6%. 2.6 UPRNN satisfies the definition of Govt Authority as per the GST Laws. UPRNN also satisfies the definition of Govt Entity as it is wholly owned undertaking of the Govt of Uttar Pradesh including its nominees wholly own 100% of share-holding in UPRNN. 2.7 Applicant submits that the reduced rate of 6 % CGST under entry 3 (vi) would apply only in respect of three types of works mentioned in sub clauses (a), (b) and (c) of clause (vi) of S. No. 3, out of which only clause (b) is relevant for the present purpose which reads as, (b) a structure meant predominantly for use as (1) an educational, (ii) a clinical, or (iii) an art or cultural establishment; . 2.8 Explanation to the SI. No. 3 (vi) to Notification no. 11/2017 added vide Notification No. 17/2018-Central Tax (Rate) dated 26.07.2018 states that: For the purposes of this item, the term 'busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C is a body entrusted by the Central Government in control of the ESIC fund and governed by the ESIC Act. Hence, the service recipient i.e., ESIC should fall under the category local authority and UPRNN and the applicant are providing service to a local authority. Therefore, the construction services provided by the applicant to the UPRNN are eligible for the concessional rate of 6% GST as provided in SI. No. 3 (vi) of the Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017. 03. CONTENTION - AS PER THE CONCERNED OFFICER: OFFICER SUBMISSION DATED 20.04.2022- 3.1 As per Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and further amended by Notification No. 24/2017- Central Tax (Rate) dated 21.09.2017, the said taxpayer is liable to pay GST rate of 12 % till 31 st December 2021. 3.2 But As per Notification No. 22/2021-Central Tax (Rate) dated 31.12.2021; the said taxpayer is liable to pay the GST at the rate 18 % w.e.f 01.01.2022. 04. HEARING 4.1 Preliminary hearing in the matter was held on 12.04.2022. Shri. Sai Makrand, Learned Advocate was present and made submissions. The Jurisdictional officer Shri. Vilas Naik, AC-MUM-VAT-D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural establishment; or, (c) .. Explanation . - For the purposes of this item, the term 'business' shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. 6 Provided that where the services are supplied to a Government Entity, they should procured by the said entity in relation to a work entrusted to it by the Central Government State Government Union territory or local authority, as the case may be 5.3.2 From the submissions made by the applicant, we find that in the instant case there is Composite supply of works contract provided to UPRNN, a Government Entity by way of construction of a clinical establishment i.e. a hospital. 5.3.3 However we also find that, the above mentioned Rate Notification No 11/2017 has been further amended by Notification No. 15/2021 - CTR dated 18.11.2021 (with effect from 01.01.2022) and in Sr. No 3, in column (3), in the heading Description of Services , in item (vi), for the words Union territory, a local authority, a Governmental Authority or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
