Page 155 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : KPC PROJECT LTD. 369
SEZs/IT Layouts, for coordinating with necessary Government agencies and
provide basic infrastructure like power, water, sewerage, access roads to the
doorsteps of the proposed EMCs/IT Parks/IT SEZs/IT Campuses. APIIC has
also been nominated as Industrial Area Local Authority (IALA) in Madhurawa-
da IT layout for undertaking provision & maintenance of Infrastructure facilities.
In continuation to the above, Information Technology, Electronics and
Communications ITE & S has requested APIIC to develop an IT Tower of
3,00,000 sft. in 4.0 acres of land at Madhurawada, Visakhapatnam for accommo-
dating Small and Medium Enterprises (SMEs) and Startups. In this regard, Gov-
ernment of Andhra Pradesh is proposed for Construction of Millennium IT Tow-
ers at Madhurawada, Visakhapatnam at an estimated cost of Rs. 190.00 Cr. and
for provision of external and internal infrastructure at these places, improve-
ments to approach roads, provision of drinking water etc. in the IT layouts.
In continuation to the above APIIC called Tenders for the Construction
of Millennium Tower at Plot No. 16 & 17, (in 4.00 Acres) at Hill No. 3,
Madhurawada, Visakhapatnam Dist work and accepted the quote by KPC and
awarded work for Rs. 85,80,31,302/- (Rupees Eighty Five Crores Eighty Lacs
Thirty One Thousand Three Hundred and Two only).
Scope of the work :
The applicant submits that the awarded work i.e., Construction of Mil-
lennium Tower at Plot No. 16 & 17 (in 4.00 Acres) at Hill No. 3. Madhurawada,
Visakhapatnam District includes Earth Works, Civil Works, Plain and Reinforced
Cement Concrete works, Flooring and Wall Finishes works, Doors and Window
Works, Elevation Features works, Water Proofing Works, Painting and Finishing
Works, Drainage, Sewerage, Water Supply, Plumbing System works, HVAC
Works, Electrification Works for IT Tower, Basement, Security Room, Canteen,
Dietary-Sanitary and for Common areas. And also scope of the Contract include
cost of all Constructional material, labour, machinery, transportation, erection,
maintenance and completion with all general risks, liabilities and obligations set
out of implied in the Contract.
In this regard they further submit that the Contract awarded by the
APIIC, shall fall under the purview of Works Contract Service as defined under
Section 2(119) of GST Act as mentioned hereunder :
- works contract means a contract for building, construction, fabrication,
completion, erection, installation, fitting out, improvement, modification,
repair, maintenance, renovation, alteration or commissioning of any im-
movable property wherein transfer of property in goods (whether as goods
or in some other form) is involved in the execution of such contract;
The applicant further submits that, on receipt of the work order they have been
executing the work prior to the implementation of GST, and they are paying the
applicable taxes under Andhra Pradesh VAT and Service Tax Act, which are be-
ing reimbursed by the APIIC in turn.
In line with the above, the applicant submits that, after implementation
of GST the APIIC has been making payments against RA Bills including the
work done value along with GST applicable rate @ 18% till October, 2017, and
the same has been reflected and the tax liability is discharged through GSTR-3B
on the work done value accordingly.
Further the applicant submits that the APIIC making payment only for
work done values and not releasing any GST amounts from November, 2017 and
GST LAW TIMES  20th August 2020  155