Page 138 - GSTL_20th August 2020_Vol 39_Part 3

352 GST LAW TIMES [ Vol. 39
(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.
This context necessitates the examination of two issues
(1) Primarily, whether APIIC which awarded construction work to the
applicant would qualify for a Governmental Authority/entity or
not.
(2) Consequently whether the construction work taken up by the appli-
cant is meant for business or otherwise.
(1) Initially we examine whether M/S. APIIC is a Government Authori-
ty/Entity or otherwise
The para 4 of clauses (ix) & (x) of Notification No. 11/2017-C.T.
(Rate), dated, 28-6-2017 as amended by Notification No. 31/2017-
C.T. (Rate), dated 13-10-2017 is as hereunder;
(ix) “Governmental Authority” means an authority or a board or
any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with 90% or more par-
ticipation by way of equity or control, to carry out any
function entrusted to a municipality under Article 243W
of the Constitution or to a Panchayat under Article 243G
of the Constitution.
(x) “Governmental 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 a State Legislature; or
(ii) established by any Government,
with 90% or more participation by way of equity or control, to carry
out any function entrusted by the Central Government, State Gov-
ernment, Union Territory or a local authority.
Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC)
was formed in 1973 by the GO No. 831, dated 10 Sep., 1973 issued
by Government of Andhra Pradesh. As seen from the shareholding
ratios of the 41st Annual Reports for the years 2013-14 as made
available by APIIC website https://www.apiic.in, the Government of
Andhra Pradesh including its nominees is having 100% of share-
holding and thus it is covered under the definition of ‘Government
Entity’ under the above said provisions. Therefore, we conclude
that M/s. APIIC is a “Government Entity” for the purpose of GST
matters.
(2) Now we examine whether the construction work in which the ap-
plicant is engaged in is meant for any business or otherwise.
As seen from the 41st Annual Report tor the year 2013-14 as made
available by APIIC in their website https://www.apiic.in/
Annualreports.html. they are engaged in land acquisition and devel-
opment and allotment of plots and sheds to various industrial ven-
tures in the State making investments in joint venture, in associate
companies, in related party companies, in subsidiary companies
etc., and the income they are getting is revenue from operations like

GST LAW TIMES  20th August 2020  138