Page 160 - GSTL_16th July 2020_Vol. 38_Part 3

398 GST LAW TIMES [ Vol. 38
network on this national optical fiber network for enabling of various types of
applications in the gram panchayats/villages (c) operation and maintenance of
this project in accordance with the Central Government/DOT guidelines, that
Notification No. 24/2017-CGST (Rate) amends Sr. No. 3(iii) of Notification No.
11/2017-CGST (Rates) as :
“(vi) Services provided to the Central Government, State Government,
Union Territory, a local authority or a governmental authority by way of con-
struction, erection, commissioning, installation, completion, fitting out, re-
pair, maintenance, renovation, or alteration of -
(a) a civil structure or any other original works meant predominantly
for use other than for commerce, industry, or any other busi-
ness or profession;
(b) a structure meant predominantly for use as (i) an educational,
(ii) a clinical, or (iii) an art or cultural establishment; or
(c) 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 Central Goods and Services Tax
Act, 2017.”
6. The applicant have further stated that the work executed by them is
Original work and the laying of Optical Fiber Cable is for the purpose of connect-
ing Gram Panchayat as stated in Object of Tripartite MOU hence it satisfied the
condition of ‘Original Work’, that the activity is undertaken for the purpose of
connecting Gram Panchayat and thus it will also be satisfying the condition-
predominantly for use other than for commerce, industry or any other business
or profession’, that M/s. Bharat Broadband Network Ltd. have further entered
into agreement with M/s. Railtel Corporation of India Ltd. to further execute the
work entrusted by Government of India for laying of Optical fiber cable, that
floating tender for the work, that execution, supervision of the work etc. is done
by M/s. Railtel Corporation of India Ltd. on behalf of M/s. Bharat Broadband
Network Ltd., that they carry out the activity of excavation of trenches and lay-
ing of optical fiber cable and post execution of works contract, they bill to M/s.
Bharat Broadband Network Ltd. and submit the bills and other documents to
M/s. Railtel Corporation of India Ltd. for their review and processing on behalf
of M/s. Bharat Broadband Network Ltd., that M/s. Bharat Broadband Network
Ltd. is an entity incorporated under the sub-category of ‘Union Government
Company’ under Companies Act and have attached a copy of the said compa-
ny’s master data. The applicant has attached a copy of MGT-7 (as available from
the database of Ministry of Corporate Affairs) wherein as per para-VI(a) (Sr. No.
2), the Central Government holds 100% shares in M/s. Bharat Broadband Net-
work Ltd. and has stated that the work executed and supplied to M/s. Bharat
Broadband Network Ltd. satisfies the condition of Government entity. The appli-
cant has submitted that ‘Government entity’ is defined at Clause (x) of Para-4 of
Notification No. 31/2017-Central Tax (Rates), dated 13-10-2017 which reads as
under :
(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.”
GST LAW TIMES  16th July 2020  160