Page 139 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : DEC INFRASTRUCTURE AND PROJECTS (I) PVT. LTD. 353
sale of land, houses, interest on hire purchase and long term bor-
rowings etc.,
In this context, it is worthwhile to make a reference to an aspect in
Page No. 25 of the above mentioned Annual Report regarding
“Land Conversion Charges”
“The State Investment Promotion Committee (SIPC) in its
meeting held on 26-4-2013, decided not to provide exemption to the
corporation from payment of land conversion fee for non-agricultural
purposes foregoing state revenues since APIIC would pass on any
costs to the end client”.
It is evident from the above statement that the activities of M/s. APIIC are busi-
ness activities and not otherwise. Moreover, the applicant did not provide any
information or documentary proof evidencing that the construction/building is
for use other than for commerce, industry, or any other business or profession to
be eligible for concessional rate of 12% (6% CGST + 6% SGST) available under
Notification No. 24/2017-C.T. (Rate), dated 21-9-2017.
7. In this case, the contract entered by the applicant is classifiable under
SAC Heading No. 9954 under construction services, and it falls under Entry No.
(ii) of Serial No. 3 of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017
i.e., Composite Supply of Works Contract as defined in clause (119) of Section 2
of Central Goods and Services Tax Act, 2017 and the applicable rate of tax is 18%
(9% under Central Tax and 9% State Tax).
RULING

Question : Whether the above work of APIIC executed by the applicant
after 22-8-2017 falls under the 18% rate of tax or 12% rate of
tax?
Answer : The activities of the transaction referred by the applicant are
classifiable under SAC Heading No. 9954 under construction
services, which fall under Entry No. (ii) of Serial No. 3 of
Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017
and the applicable rate of tax is 18% (9% Central Tax + 9%
State Tax).
Question : If the work falls under 18% Rate of tax, then can the advance
ruling authority guide the APIIC authority to reimburse the
GST amount to the construction agency?
Answer : It is not under the purview of Section 97(2) of CGST Act,
2017.
Question : If the work falls under 12% Rate of tax, then can we claim
the refund of the GST amount which was paid excess while
filing the GST returns from the CGST and SGST authority?
(While filing the GST returns Tax paid @ 18%)
Answer : It is not under the purview of Section 97(2) of CGST Act,
2017.

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GST LAW TIMES  20th August 2020  139