Page 158 - GSTL_20th August 2020_Vol 39_Part 3

372 GST LAW TIMES [ Vol. 39
(ii) established by any Government, with 90% or more participa-
tion by way of equity or control, to carry out any function en-
trusted to a municipality under article 243W of the Constitu-
tion 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 Government, 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.npiic.in. the Gov-
ernment of Andhra Pradesh including its nominees is having 100% of share hold-
ing 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 “Govern-
ment Entity” for the purpose of GST matters.
Classification of Service and rate of tax
As seen from the Agreement, the applicant agreed for construction of
Millennium tower at Madhurawada, Visakhapatnam for Information Technology
and Communication Department, Government of Andhra Pradesh and through
Nodal Agency APIIC, which includes procurement and supply of goods and
services, for agreed consideration. 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, com-
pletion, erection, installation, fitting out, improvement, modification, re-
pair, maintenance, renovation, alteration or commissioning of any immov-
able 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), dated 28-7-2017 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,
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