Page 179 - GSTL_18th June 2020_Vol 37_Part 3

2020 ] IN RE : HOMBALE CONSTRUCTIONS & ESTATES PVT. LTD. 393
“(x) “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 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.”
5.7 Further it was observed that the NCBS began as a separate centre of
TIFR in 1992, first in the Molecular Biology Unit at TIFR in Bombay, and then at
the IISc Campus in Bangalore where its laboratories are established. The Gov-
ernment of India has agreed to fund the institute and the institute was to func-
tion as an “autonomous unit under the aegis of TIFR . . .”. Hence it is clear that
NCBS is neither set up by an Act of Parliament or State Legislature nor is estab-
lished by any Government. Further the Council which administers this institute
has only four members appointed by the Government and hence the Govern-
ment does not have more than 90% control over it. One more important point to
note is that this institute is not established to carry out a function entrusted by
the Government. Hence, for all these reasons, NCBS is not covered under the
definition of a “Government Entity” as per the clause (x) of paragraph 4 of Noti-
fication No. 11/2017-Central Tax (Rate), dated 28-6-2017.
5.8 Further, clause (vi) has a proviso which reads as under :
“Provided that where the services are supplied to a Government Entity,
they should have been procured by the said entity in relation to a work en-
trusted to it by the Central Government, State Government, Union territory
or local authority, as the case may be”
Even here, to be covered under this clause, the services must be procured by
NCBS in relation to a work entrusted to it by the Government, which is not the
case.
5.9 In view of the above, the service supplied by the applicant is not
covered under clause (vi) of Serial No. 3 of Notification No. 11/2017-Central Tax
(Rate), dated 28-6-2017 as amended from time to time and hence is not taxable at
6% CGST and 6% KGST. And it is taxable at 9% CGST and 9% KGST under the
residual item no. (xii) of Serial No. 3 of Notification No. 11/2017-Central Tax
(Rate), dated 28-6-2017 as amended from time to time.
6. In view of the foregoing, we rule as follows
RULING
7. The works contract service provided by the applicant to NCBS, for
the reasons stated above, is liable to tax at :
(a) 9% CGST as it is covered under item no. (xii) of Serial No. 3 of Noti-
fication No. 11/2017-Central Tax (Rate), dated 28-6-2017 as amend-
ed from time to time under the CGST Act and
(b) 9% KGST as it is covered under item no. (xii) of Serial No. 3 of Noti-
fication 11/2017 No. FD 48 CSL 2017, dated 29-6-2017 as amended
from time to time under the KGST Act.

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GST LAW TIMES  18th June 2020  179