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TMI Blog2022 (5) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral 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-66/2021-22/B-58 - - - Dated:- 4-5-2022 - SHRI. RAJIV MAGOO, AND SHRI. T. R. RAMNANI, MEMBER NO.GST-ARA-66/2021-22/B-58 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 ..... 2.5 The subject work involves works contract services for the installation, fitting out and construction of the staff quarters. Further, UPRNN is a wholly owned company by the Govt of Uttar Pradesh and satisfies the definition of Government Authority/Govt. Entity. In terms of SI. No. 3 (vi) of Notification 11/2017-CTR dated 28.06.2017, as amended, composite supply of works contract provided to the Central Govt, State Govt, Union Territory, local authority, Governmental Authority or Govt Entity is eligible for the concessional rate of 6%. 2.6 The concessional 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 sub clause (a) reads as: a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession . Further, the 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 'business' shall not include any activity or transaction undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 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 228 Nos. Type-III Staff quarters at D Nagar, Andheri (W), Mumbai, Maharashtra , the scope of which requires the applicant to construct the quarters for Employee State Insurance Corporation ( ESIC ), a statutory body under Ministry of Labour Employment, Govt of India. 5.3.1 The applicant has submitted that, since they are rendering a Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided to the Uttar Pradesh Rajkiya Nirman Ni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ESIC and therefore, it can be said that the supply is in respect of a 'civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession'. 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 a Government Entity the words Union territory or a local authority have been substituted and that means the words or a Governmental authority or a Government Entity are omitted. Therefore, with effect from 01.01.2022, the impugned services supplied by the applicant will not be covered under Sr. No. 3 (vi) of Notification No. 11/2021 - CTR dated 28.06.2017 as amended from time to time. 5.3.4 During the course of the final hearing, the Authorised representative of the applicant informed this Authority that the impugned services are not being rendered at present and they will begin the construction as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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