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TMI Blog2022 (5) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., the applicant, seeking an advance ruling in respect of the following questions. 1. In view of the construction services provided by the applicant to UPRNN, is the applicant eligible to avail the concessional rate of GST at 12% as prescribed in of S.No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended? 2. If not, what is the appropriate rate and classification of GST to be charged by the applicant? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST 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 provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... radesh 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UPRNN. Therefore, UPRNN becomes the principal contractor and the applicant becomes the sub-contractor in the present scenario and Notification No. 01/2018- C.T.(Rate) read with SI. No. 3(ix) of Notification No. 11/2017- C.T. (Rate) provides for a concessional rate of 6% GST. 2.12 Applicant submits that ESIC must be considered as a local body as defined under Section 2 (69) of the CGST Act. The promulgation of Employees' State Insurance Act, 1948(ESI Act), by the Parliament was the first major legislation on social Security for workers in independent India. The ES1 Act 1948, encompasses certain health related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-716, NODAL-8 was also present. The jurisdictional officer was asked to file written submission within a weeks' time. On request of applicant, the case was heard finally and kept for order. Application was heard. 05. OBSERVATIONS AND FINDINGS: 5.1 We have perused the documents on record and considered the submissions made by the concerned parties to the issue. 5.2 M/s. KPC Projects Ltd., the applicant has been awarded a Work Order for "Construction of 200 bedded ESI Hospital at Butibori, Nagpur, Maharashtra", the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (b) a structure meant predominantly for use, as (i) an educational, (ii) a clinical, or (iii) an art or cultural 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndment brought about in Notification No. 11/2017-CTR dated 28.06.2017 vide Notification No. 15/2021 - CTR dated 18.11.2021 (with effect from 01.01.2022). However, this authority has been asked by the applicant to answer all its questions. 5.3.6 In view of the above discussion made in para nos 5.3.1 to 5.3.4, we hold that the applicant is not of eligible to avail the concessional rate of GST at 12% as prescribed in of S. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 for the impugned construction services provided by them to UPRNN. 5.4.1 The second question raised by the applicant is if the impugned service is not covered under Sr. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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