Page 157 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : KPC PROJECT LTD. 371
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns. controls or holds
twenty-five per cent, or more of the outstanding voting
stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a
third person;
(vii) together they directly or indirectly control a third person;
or
(viii) they are members of the same family;
(b) the term person also includes legal persons;
(c) persons who are associated in the business of one another in
that one is the sole agent or sole distributor or sole concession-
aire, howsoever described, of the other, shall be deemed to be
related.
Rule 35 : Value of supply inclusive of integrated tax, central tax, State tax,
Union territory tax. - Where the value of supply is inclusive of integrated
tax or, as the case may be, central tax, State tax, Union territory tax, the tax
amount shall be determined in the following manner, namely
Tax amount = (Value inclusive of taxes x tax rate in % of IGST or, as
the case may be, CGST, SGST or UTGST) ÷ (100 + sum of tax rates,
as applicable, in %)
Further the applicant submits that when they approached APIIC for releasing the
GST amount on the subject works, they mentioned that they have to follow the
G.O. Ms. No. 58, dated 8-5-2018 issued by Government of Andhra Pradesh,
Finance Department and GST will be released as mentioned hereunder :
(a) The rate of GST fixed @ 18% (9% CGST and 9% SGST) for the work
contracts from 1-7-2017 to 21-8-2017 and GST @ 12% (6% CGST and
6% SGST) from 22-8-2017 with input tax credit.
(b) With effect from 13-10-2017 the works contract involving predomi-
nantly earth work (i.e., constituting more than 75% of the value of
the work) attracts 5% GST with input tax credit.
In view of all the above the applicant requests for an advance ruling on Applica-
bility of GST Rate for Construction of Millennium Tower at Madhurawada, Visa-
khapatnam for Information Technology and Communication Department, Gov-
ernment of Andhra Pradesh and through Nodal Agency APIIC and if at all GST
should be payable @ 12%, whether a claim for refund be submitted in RFD-01.
7. Discussion and findings :
We have examined the specific issues raised in the application i.e. M/s.
APIIC is Government Entity or otherwise, classification of the service and appli-
cable rate of tax thereon for the agreed works under the provisions of respective
GST Acts.
Whether M/s. APIIC is a Government Authority/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 oth-
er body, -
(i) set up by an Act of Parliament or a State Legislature; or

GST LAW TIMES  20th August 2020  157