Page 137 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : DEC INFRASTRUCTURE AND PROJECTS (I) PVT. LTD. 351
the applicant on the issue, for which the Advance Ruling sought by the appli-
cant.
5. Record of personal hearing :
Sri B. Laxman, the authorized representatives of the applicant appeared
for Personal Hearing on 19-12-2019 and they reiterated the submission already
made in the application.
6. Discussion and findings :
We have examined the specific issues raised in the application classifica-
tion of the service and applicable rate of tax thereon for the agreed works under
the provisions of respective GST Acts.
Classification of Service and rate of tax
As seen from the application, the applicant agreed for construction work
namely “Construction of Building for Office space/IT space at IT park, Man-
galgiri as awarded by APIIC. The activity of construction includes both supply of
goods and also services.
The Section 2(119) of CGST Act, 2017/APGST Act, 2017 defines “works
contract” as a contract for building, construction, fabrication, completion,
erection, installation, fitting out, improvement, modification, 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 composite supply of works contract under Section 2(119) of CGST Act,
2017/APGST Act, 2017 is treated as supply of service in terms of Serial No.
6(a) of Schedule-II of CGST Act, 2017/APGST Act, 2017.
The Government of India, vide Notification No. 11/2017-Central Tax (Rate), dat-
ed 28 June, 2017 notified the rate of GST applicable on supply of services. Under
this notification for Heading 9954 the applicable rate of GST is 9%.
The said notification has been amended from time to time and the fol-
lowing notifications are issued by the Government of India and the said amend-
ment Notifications are as follows -
(1) Notification No. 20/2017-Central Tax (Rate), dated 22-8-2017.
(2) Notification No. 24/2017-Central Tax (Rate), dated 21-9-2017.
(3) Notification No. 31/2017-Central Tax (Rate), dated 13-10-2017.
(4) Notification No. 46/2017-Central Tax (Rate), dated 14-11-2017.
(5) Notification No. 1/2018-Central Tax (Rate), dated 25-1-2018.
Vide Notification No. 24/2017-Central Tax (Rate), dated 21-9-2017, Government
of India by inserting Entry No. (vi) notified concessional GST rate of 6% for the con-
struction services provided to Central Government, State Government, Union Territory,
a local authority or a Governmental Authority by way of construction, erection, commis-
sioning, installation, completion, fitting out, repair, maintenance, renovation, or altera-
tion of -
(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

GST LAW TIMES  20th August 2020  137