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TMI Blog2022 (10) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... nding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The Applicant requested an advance ruling on the following: Whether the works contract service provided to Malabar Cancer Centre is to be billed at 12% GST or to be billed at 18% GST?" 4. Contentions of the Applicant: 4.1. The applicant submits that they have entered into an agreement with the Director, Malabar Cancer Centre [MCC] Thalassery, Kannur established as a charitable society registered under the Societies Registration Act (21 of 1860) for the construction and extension of site and building. MCC is an autonomous institution under Health and Family Welfare Department, Government of Kerala, started with an aim to establish a comprehensive cancer centre, providing the much-required oncology care to the general public. The control and management of the society are vested in the Governing Body consisting of 23 members with the Hon'ble Chief Minister of Kerala as the Chairman. The routine activities are controlled by the Department of Health and Family Welfare, Government of Kerala. The members of the Governing Body and Executive Committee are functioning by virtue of their official pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 per cent 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. 5.3. The Government of Kerala, has full control over the activities of MCC and it qualifies to be called and termed as a 'Government Entity1 for the purpose of GST law, as it fulfills the necessary and sufficient conditions laid down under the notification supra. 5.4. SI. No.3 (vi) of the Notification No. 11/2017 - Central Tax (Rate) dated 28-06-2017 is given as under; (vi) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, {other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above provided to the Central Government, state Government, Union Territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, mainte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate) dated June 28, 2017 and would attract 18% GST. 5.7. Thus the composite supply of works contract as defined in clause (119) of Section 2 of the CGST Act, 2017 which squarely fall within the ambit of the scope of work entrusted to MCC by Government of Kerala shall be entitled to a concessional rate under SI No. 3(vi) to Notification No. 11/2017-CT (Rate) Accordingly, each and every supply under the subject contract shall be treated separately for determining the rate of tax under the CGST Act, 2017 read with the provisions of the GST Tariff and respective exemption notifications. 6. Personal Hearing: The applicant was granted opportunity for personal hearing on 26.10.2021. Shri Shaju Srakeentavida represented the applicant in the personal hearing. The representative reiterated the contentions made in the application and requested to issue a ruling based on the submissions in the application. 7. Discussion and Findings: 7.1. The matter was examined in detail. The issue to be determined is the rate of GST applicable on the services provided by the applicant to Malabar Cancer Centre. It is stated by the applicant that the services provided are for the construction and extensio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded to Central Government or State Government or Local Authority or Governmental Authority or Government entity. The specified works contract services are supply by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of (i) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession or (ii) a structure meant predominantly for use as an educational, a clinical, or an art or cultural establishment or (iii) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the CGST Act. 7.4. Therefore, the conditions to be fulfilled for a supply to be eligible for the concessional rate under the above entry are; (i) the supply must be a composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017; (ii) the supply must satisfy any of the specified descriptions and (iii) the supply must be provided to the Central Government or State Government or Local Authority or Governmental Aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er body,- (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under Article 243W of the Constitution or to a Panchayat under Article 243G of the Constitution. 7.8. The functions entrusted to a municipality under the Twelfth Schedule to Article 243W of the Constitution are: (a) Urban planning including town planning; (b) Regulation of land-use and construction of buildings; (c) Planning for economic and social development; (d) Roads and bridges; (e) Water supply for domestic, industrial and commercial purposes; (f) Public health, sanitation conservancy and solid waste management; (g) Fire services; (h) Urban forestry, protection of the environment and promotion of ecological aspects; (i) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded; (j) Slum improvement and upgradation; (k) Urban poverty alleviation; (I) Provision of urban amenities and facilities such as parks, gardens, playgrounds; (m) Promotion of cultural, educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the Hon'ble Chief Minister of Kerala is the Chairman. The members of the Governing Body and Executive Committee hold their position by virtue of their official positions in the Government of Kerala and also as nominated by the State Government. Further, public health is a function entrusted to a Municipality as well as to a Panchayat under Article 243W and Article 243G respectively of the Constitution. Therefore, it is evident that Malabar Cancer Centre is a society established by the State Government with 100 per cent participation by way of equity or control, to carry out the function of public health a function entrusted to a municipality as well as a panchayat under Article 243W and Article 243G respectively of the Constitution and accordingly falls within the definition of governmental authority under Para 4 (ix) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. 7.11. Based on the discussion above, we conclude that the services rendered by the applicant to Malabar Cancer Centre as detailed in the application are eligible for the concessional rate of tax of 12% [6% -CGST+ 6% - SGST] prescribed in the entry at SI No. 3(vi) of Notification No. 11/2017 Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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