Page 169 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : GVS PROJECTS PVT. LTD. 255
(a) a civil structure or any other original works meant predominantly
for use other than for commerce, industry, or any other business 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.
Further, vide Notification No. 31/2017-Central Tax (Rate), dated 13-10-2017,
Government of India substitute the words “Central Government, State Govern-
ment, Union territory, a local authority, a Governmental Authority or a Govern-
ment Entity” in place of “Central Government, State Government, Union territo-
ry, a local authority or a Governmental Authority”.
Now, we examine the question that the Applicant Contractee i.e. M/s.
APSPDCL/APEPDCL is a Government entity or not. As per Notification No.
31/2017-Central Tax (Rate), dated 13-10-2017 issued under CGST Act, 2017 and
corresponding notification under APGST Act, 2017 Government Entity is defined
as under :
“Government Entity” means an authority or a board or any other body in-
cluding 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 par-
ticipation by way of equity or control, to carry out a function
entrusted by the Central Government, State Government, Un-
ion territory or a local authority.
The Applicant Contractees i.e. APSPDCL and AEPDCL are Government Compa-
nies i.e. wholly owned by the Government of Andhra Pradesh. When a copy of
Audited Annual Accounts of M/s. APSPDCL and APEPDCL are examined, it is
evident from the schedule of Equity Share Capital of the Annual Statement that
100% share capital is held by the Government of Andhra Pradesh in the name of
Honourable Governor of Andhra Pradesh. Thus, based on the above facts, it is
concluded that the Government of Andhra Pradesh is having full control over
the APSPDCL and APEPDCL and they are covered under the definition of Gov-
ernment Entities.
Now we discuss the nature of work undertaken by the applicant :
The applicant is engaged in the execution of works awarded by M/s.
APEPDCL and APSPDCL for (1) Construction of Indoor Sub-station with control
Room and all civil works (2) Electrical Works (3) providing bore well (4) Erection
of 33 KV line with 100 Sqmm AAA conductor (DC) (5) Erection of 11 KV line
with 100 Sqmm conductor (6) Erection of 33 KV UG cable (7) Erection of 11 KV
UG cable. For all the civil works, where materials such as sand, metal, gravel etc.,
are involved, the rates are inclusive of seigniorage charges as fixed by the Com-
petent Authority of Government of AP and the same will be recovered from the
contract bills for remittance to the Government. Materials such as Power Trans-
formers, 100 Sqmm Conductor & Station Transformer will be supplied by de-
partment. In some agreements all the materials are in Contractor’s scope. Now
the works under discussion have been undertaken to execute/implement various
schemes for constructing sub-stations, providing bore wells, erection of lines and
required conductors etc. Moreover, the above works undertaken by APSPDCL
GST LAW TIMES  13th August 2020  169