Page 164 - GSTL_16th July 2020_Vol. 38_Part 3

402 GST LAW TIMES [ Vol. 38
aged structures on land that are required to make them work-
able.
(ii) Erection, commission or installation of plant, machinery or
equipment or structures, whether fabricated or otherwise.
14. In view of the above, services provided by applicant would be lia-
ble to tax at the rate of 12% in terms of Entry No. 3(vi) of Notification No.
11/2017-Central Tax (Rate), as amended from time to time, subject to the follow-
ing conditions :
(i) It must be a composite supply of works contract as defined in Sec-
tion 2(119) of the CGST Act, 2017.
(ii) The contract should be by way of construction, erection, commis-
sioning, installation, completion, fitting out, repair, maintenance,
renovation or alteration of civil structure or any other original
works.
(iii) It must be provided to the Central Government, State Government,
Union Territory, a local authority, a Government Authority or a
Government Entity.
(iv) The civil structure or original works must be predominantly meant
for use other than for commerce, industry, or any other business or
profession.
14.1 Works Contract is defined under clause (119) of Section 2 of the
Central Goods and Services Tax Act, 2017, as under :
(119) “works contract” means a contract for building, construction, fabrica-
tion, completion, erection, installation, fitting out, improvement, modifica-
tion, repair, maintenance, renovation, alteration or commissioning of any
immovable property wherein transfer of property in goods (whether as goods
or in some other form) is involved in the execution of such contract;
The contracts the applicant is executing are covered under the definition of
‘Works Contract’ as (a) they are in relation to the completion, erection, installa-
tion and commissioning of an immovable property as both the projects are turn-
key projects and (b) there is transfer of property in goods involved. Hence the
first condition is satisfied.
14.2 The contract is for construction, erection, commission, installation
and completion of original work. The contract is a new construction and involves
excavation of trenches and laying of Optical Fibre Cables (OFC) through ducts,
testing, commissioning of OFC and maintenance in the 03 blocks in Nakhatrana
and Abdasa of Kachchh district, thus involves erection, commissioning and in-
stallation of equipment or structures and thus the second condition is satisfied.
14.3 Now, the next point to be determined is whether the person to
whom the applicant is providing the work/service is covered under the defini-
tion of ‘Government Authority' or ‘Government Entity’. The applicant is execut-
ing the work for M/s. Railtel Corporation of India Ltd. (on behalf of Bharat
Broadband Network Ltd.) which is a Government of India undertaking with 90
per cent or more participation by way of equity or control. However, in order to
fulfil the definition of being a ‘Government Authority’, the work carried out by
the applicant for M/s. Railtel Corporation of India Ltd. should be any function
entrusted to a Municipality under Article 243W of the Constitution or to a Pan-
chayat under Article 243G of the Constitution. The functions entrusted to a mu-
nicipality and to a Panchayat under the Constitution of India are listed below :
GST LAW TIMES  16th July 2020  164