9911796707
TMI Blog2021 (7) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... pursued by the Company on its incorporation are to engage in the business of procurement, supply and distribution of electricity; to take over the distribution and supply of electricity business from the Transmission Corporation of Andhra Pradesh Limited; to acquire business/companies; to acquire know-how etc. Thus, the incorporation of the company itself is based on business purposes. Thus, the services were provided by the applicant to a business entity i.e., APEPDCL in the present context. It is an undeniable fact that APEPDCL is not rendering any non commercial services but receiving payment/reimbursement for its commercial activity from the Government of A.P. in form of 100% grants. Finally, even though APEPDCL has been considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts of the case: 1) The applicant, M/s. Technosoft solutions, Visakhapatnam is a registered GST dealer having GST No.37AEWPA9021R1ZQ and engaged in electrification work. The applicant entered in to contract with Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL) relating to Erection of S-Ph 16KVA DTRs, 6.3KV LT lines to extend Grid supply to Tribal habitations which were already electrified with DDG projects in Srikakulam and Visakhapatnam Circles on partial turnkey basis under Tribal Sub- Plan (TSP) at a cost of Rs. 1,81,57,657.35/- vide Agreement No.07/2017-18 dated 13.11.2017. 2) The applicant submitted that 5 nos of RA bills had been raised on supply receipient charging 18% GST and APEPDCL paid the same and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bal Sub-Plan (TSP). 3. Whether the rate of tax 12% to be charged as directed by the APEPDCL as the tribal sub work, which are implemented with 100% grants given by Government of AP are liable to be taxed at the rate of 12% or 18%. On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction, i.e. Assistant Commissioner (ST), Dwarakanagar Circle, Visakhapatnam Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, remarks were received from the jurisdictional officers concerned stating that no proceedings were passed so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I of the GST Act, 2017 of para 6(a), works contract shall be treated as supply of service . The Government of India vide Notification No. 11/2017 - Central Tax (Rate), dated: 28th June 2017 notified the rate of GST applicable on supply of services. The composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 under SI.No.3 of chapter heading 9954 attracts a tax rate of 18%. The said notification has been amended from time to time and entry No.VI is inserted vide Notification No. 24/2017-Central Tax (Rate) date: 21.09.2017, notifying a concessional GST rate of 6% for the services provided to Central Government, State Government, Union Territory, a local authority or a Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment Entity means 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 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. The Applicant Contractee, APEPDCL is a Government Company i.e. wholly owned by the Government of Andhra Pradesh. It is evident from the schedule of Equity Share Capital of the Annual Statement that 100% share capital is held by the Government of Andhra Pradesh in the name of Honourable Governor of Andhra Pradesh. Based on the above facts, it is con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate) dated: 13.10.2017. With the foregoing, we rule as under. RULING (Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017) 1. Question: Whether APEPDCL can be treated as a limb of Government of AP or not? Answer : APEPDCL is a 'Government Entity'. 2. Question: The rate of tax is 12% or 18% and also under which SAC/ HSN code the above work which was awarded by the APEPDCL falls. Answer : The applicable rate of tax is 18% (9% under Central tax and 9% State tax) under Heading 9954 for the services referred by the Applicant as per entry no. (ii) of SI.No.3 of the table of Notification No.11/2017 - Central Tax (Rate), Dated: 28th June 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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