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TMI Blog2023 (1) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Government'', "Union Territory" and "Local Authority" and accordingly request to define the said terms. Further in this regard, we seek clarification as to whether corporations and departments working under various Ministries of Central Government State Governments and UTs will form part of Central Government/ State Government/ Union territory or Local Authority? ii. The above notifications prescribe different rates based on service recipient for e.g., Notification No. 24/2017 states that specified Services provided to the Central Government, State Government, Union Territory or a local authority will be taxable at the rate of 12% (6% CGST & 6% SGST) and that another issue arises here is that if an organization has awarded their company a contract but the said organization is entrusted by a Ministry/ Department of Government to float the tender and award the work to the eligible Contractor, then who will be deemed to be the services recipient, Government or the organization? For Example: Ministry of AYUSH has instructed NBCC (India) Limited to construct an Ayurvedic College in Goa, the applicant was awarded the Tender by NBCC (India) Limited. In this Case who will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and aesthetic improvement and other miscellaneous civil and electrical works at Hotel Janpath, New Delhi awarded by Central Public Works Department. Vide F. No. 23 (2)/EECVPD-II/Janpath/2019-20/38 dated 28.02.2020 (Herein after referred to as Project E) 2.2.6 Face lifting and renovation of E Type and F Type buildings in colony of CSTPCS Chandrapur awarded by Maharashtra State Power Generation Company Limited vide F. No. CSTPS/CHN/CMU/Qtr. Renovation/01665 dated 01.02.2019 and F. No.CSTPS/CHN/CMU/Qtr. Renovation/01667 dated 01.02.2019 (Herein after referred to as Project F) 2.2.7 Design and construction of 300 bedded hospital (expandable to 500 bedded) at ESIC, Nandanagar, Indore awarded by Central Public Works Department, Indore vide Letter No. 23 (8)/ का. इ. प. म.-I/सी.पी.डब्ल्यू.डी/2021-22/793 dated 14.06.2021 (Herein after referred to as Project G). That, Copies of Work Order/ LOAs have been attached for reference. 2.3 The government issued Notification No. 11/2017 Central Tax (Rate), on 28th June 2017 wherein Heading 9954 (Construction services) was taxed (4' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as to what is the meaning of Central Government, State Government, Union Territory or local authority. No -clarity has been provided in this regard in the said Notifications. 3.4 that their view point in this regard is that since the client departments as mentioned in question No. 3 above are either owned by one of the Ministries of Central Government or are under the ownership of the Government of India or the respective state government. For Instance: a. NBCC (India) Limited - A Government of India Enterprise (as per the official website of the corporation nbccindia.com/) b. Engineering Projects India Limited - A Government of India Enterprise (as per the official website of the corporation https://epi.gov.in/content/) c. Central Public Works Department -works under Ministry of Urban Development now MoHUA (Ministry of Housing and Urban Affairs) and it is headed by the Director General (DG) who is also the Principal Technical Advisor to the Government of India. (as per the official website of CPWD https://cpwd.gov.in/) d. Maharashtra State Power Generation Company Limited - working under the Industry, Energy and Labour Dept of Govt of Maharashtra e. Employee State In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the aforementioned issues is that Corporation and Departments working under various ministries of Central Government, State Governments and UTs will form part of Central Government/ State Government/ Union territory or Local Authority as Central Government has not been defined under the Act. 4. Personal Hearing: - Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant in person, as requested by them and accordingly, Shri Vikas Agrawal, advocate; Shri Prakash Chand Agrawal C.A. and Shri Satish Kumar Sarawgi, C.F.O. legal representatives of the Applicant appeared before us for hearing on 09.03.2022 and reiterated their contention. He also furnished a written submission dated 09.03.2022 along with sample copies of work order/LOAs in support of their contentions which has been taken on record. 5. The legal position, analysis and discussion: - At the very outset, we would like to make it clear that the provisions for implementing the CGST Act and the Chhattisgarh GST Act, 2017 [hereinafter referred to as "the CGST Act and the CGGST Act"] are similar and thus, unless a mention is specifically made to such dissimila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Rate) dated 22.8.2017, Notification no. 31/2017-Central Tax (Rate) dated 13.10.2017 w.e.f 13.10.2017 and Notification no. 22/2021-Central Tax (Rate) dated 31.12.2021 w.e.f 1.1.2022] and S.no. 3 (vi)(b) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 [as amended by Notification no. 46/2017-Central Tax (Rate), dated 14.11.2017, Notification No. 3/2019-Central Tax (Rate) dated 29.3.2019, Notification no. 22/2021-Central Tax (Rate) dated 31.12.2021 w.e.f 1.1.2022 and Notification no. 17/2018-Central Tax (Rate), dated 26.7.2018]. In the instant case the eligibility or otherwise of the benefit of said Notification no. 11/2017 Central Tax (Rate) provided under S.no. 3(iii)(b), S.no. 3 (vi)(b) and S.no. 3(vi)(c) ibid, to the applicant is the subject matter of this proceeding. For the sake of brevity, the relevant text of the same is reproduced hereunder. 7.1 Rate of GST on intro-State supply of specific services with Service Code Tariff (SAC) Government of India Ministry of Finance (Deportment of Revenue) Notification No. 11/2017-Central Tax (Rate) New Delhi, the 28th June, 2017 G.S.R. 690(E) - In exercise of the powers conferred by sub-section (1) sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.] (vii).................... 6 - 7.2 Thus from the above it gets abundantly clear that for availing the benefit as stipulated supra at S.no. 3(iii)(b), S.no. 3 (vi)(b) and S.no. 3 (vi)(c) ibid of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended, all the conditions mentioned therein has to be necessarily fulfilled. 8. Regarding the first point by the applicant, that the Act has not defined the terms "Central Government", "State Government", "Union Territory" and "Local Authority", it is seen that Section 2 of the CGST Act, 2017 deals with the definition of the terms relevant to the Act, and (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the CGGST, Act, 2017, "Government" means the Government of Chhattisgarh; (iii) As per Section-2(114) "Union territory" means the territory of- [a) the Andaman and Nicobar Islands; (b) Lakshadweep; (c) [Dadra and N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (vi) (zfa) "Government 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 90per 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.". 8.1 As regard their request for a ruling, seeking clarification as to whether corporations and departments working under various Ministries of Central Government, State Governments and Union Territory would form part of Central Government/ State Government/ Union territory or Local Authority, it is quite evident that various departments functioning directly under the Central / State Government /Union territory in their own capacity would form part of the respective Governments whereas corporations per se cannot be generalized as being Central / State Government, and they can be treated as other entities viz. Governmental authority, Government Entity etc. as defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. As classification of entities, that too functional at a place outside the jurisdiction of the State of Chhattisgarh is not within the scope and purview of advance rulings under Section 98 ibid read with Section 97(2) supra, this authority is not in a position to pass any ruling regarding the status of the said entities as being a Corporation or Government Organizations into Central Government, State Government, Union Territory, local authority, Government Authority or a Government Entity. Even otherwise, this authority is of the view that without having the incorporation details / certificate of incorporation and their financial / commercial and business details, it would no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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