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TMI Blog2022 (9) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Public Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The Applicant is involved in construction activity of government works (buildings) and not with private parties. 3. The applicant has sought advance ruling in respect of the following questions: i. Applicable GST rates with regards to a. Government works contract services of Airport Terminal Building at Sogane Village in Shivamogga taluk a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagunda Taluka in Bagalkot District. v. Construction of Government School Buildings and Hostels at various places in Karnataka State. 5.2 The applicant states that Government of India through Ministry of Finance has issued a Notification No.15/2021 dated 18/11/2021-Central Tax (Rate), where the rate of GST on certain works contract services provided to Government Authority and Government Entity has been increased from 12% to 18% w.e.f., 01-01-2022. In view of this notification, the applicant seeks ruling on the applicable rate of GST on the works awarded to them. PERSONAL HEARING / PROCEEDINGS HELD ON 07-07-2022 6. Shri A. Bhaskar Reddy, Assistant General Manager of M/s KMV Projects Ltd and Duly Authorised Representative appeared for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and associated works at Sogane Village in Shivamogga taluk and District, Karnataka 2. Public works Department, Government of Karnataka -do- Development of Greenfield Airport at Vijaypur in Karnataka State 3. Karnataka State Police Housing and Infrastructure Corporation Limited. -do- Construction of High Security Prison in the premises of Central Prison, Parappana Agrahara, Bangalore. 4. Kudala Sangama Development Board -do- Construction of Basava International Center and Museum at Kudalasangam of Hunagunda Taluka in Bagalkot District 5. Karnataka Residential Educational Institutions Society -do- Construction of Residential school complex in chittapur taluq, Kalburgi District. 10. Now we proceed to examine whether the Kar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Karnataka. In view of the definitions mentioned in the para 10 supra, Karnataka State Police Housing and Infrastructure Corporation Limited qualifies to be considered as a Government Entity. 10.2 Kudala Sangama Development Board was established under Kudala Sangama Development Board Act 1994 to develop and maintain kudala sangama kshetra in Bagalkot district. More than 90% of the members of the board are from the State Government and all the administrative expenses of the board are covered by the grants given by the State Government. In view of the definitions mentioned in the para 10 supra, Kudala Sangama Development Board qualifies to be considered as a Government Entity. 10.3 Karnataka Residential Educational Institutions Society (KR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate), dated 31.12.2021 was issued in supersession of Notification No.15/2021-Central Tax (Rate), dated 18.11.2021 which brought amendment to Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as below: In the said notification, in the TABLE, against serial number 3,- 1) in column (3), in the heading "Description of Service", in items (iii),(vi),(ix) and (x), for the words "Union territory, a local authority, a Governmental Authority or a Government Entity" the words "Union territory or a local authority" shall be substituted; 2) in column (3), in the heading "Description of Service", in item (vii), for the words "Union territory, local authority, a Governmental Authority or a Government Entity" the words "Union territory or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and attracts GST @ 18% (CGST 9% and KSGST 9%) with effect from 18.07.2022, and the same is reproduced below: Sl. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition 3. Heading 9954 (Construction services) (xii). Construction services other than (vii), (viii) above 9 14. In view of the foregoing, we pass the following RULING a. Works contract services executed to Public works Department, Government of Karnataka, for Construction of Airport Terminal Building in Shivamogga are liable to tax at 9% CGST as per entry No. 3(xii) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017. b. Works contract services executed to Public works Department, Government of Karnataka, for Deve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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