Page 99 - GSTL_27th August 2020_Vol 39_Part 4

2020 ] IN RE : METHODEX SYSTEMS PVT. LTD. 425
Explanation. - For the purposes of this item, the term “business” shall not in-
clude any activity or transaction undertaken by the Central Government, a
State Government or any local authority in which they are engaged as pub-
lic authorities.
The phrase “original works” has not been defined under the provisions of GST
law. The said phrase “original works” has been frequently used with regard to
construction services under Head 9954 in the Notification No. 11/2017-Central
Tax (Rate), dated 28-6-2017 and Notification No. 12/2017-Central Tax (Rate), dat-
ed 28-6-2017 exempting specific construction services of Heading 9954. The said
term has been defined under Explanation (zs) of Notification No. 12/2017-
Central Tax (Rate), dated 28-6-2017, which reads as under :-
“(zs) ”original works” means - all new constructions -
(i) all types of additions and alterations to abandoned or dam-
aged structures on land that are required to make them work-
able.
(ii) erection, commissioning or installation of plant, machinery or
equipment or structures, whether pre-fabricated or otherwise”.
5.4 Section 2(119) of CGST Act provides “works contract” means a con-
tract for building, construction, fabrication, completion, erection, installation,
fitting out, improvement modification, repair, maintenance, renovation, altera-
tion or commissioning of any immovable property wherein transfer of property
in goods (whether as goods or in some other form) is involved in the execution of
such contract.
5.5 As per Annexure - Scheme of Classification of services to Notifica-
tion No. 11/2017-Central Tax (Rate), dated 28-6-2017, works contract services has
been classified as “construction services” under Heading 9954, which includes
the following groups :-

Group Service description
99541 Construction services of buildings
99542 General construction services of civil engineering works
99543 Site preparation services
99544 Assembly and erection of prefabricated construction
99545 Special trade construction services
99546 Installation services
99547 Building completion and finishing services

5.6 The claim as made by the CPA, Bhopal, which is a Department of
the State Government, in their letter dated 28-12-2019 that the supply, installation
and fixing of customized furniture for newly constructed Mantralaya, Vallabh
Bhawan Extension, Bhopal is covered under composite supply of works contract
as defined u/s 2(119) of CGST Act and the rate of tax applicable to the said sup-
ply is 12% as per Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 is
not legally tenable.
5.7 As per Sl. No. 438 of Schedule-III of CGST Act under HSN 9403 ”other
furniture (other than furniture wholly made of bamboo, cane or rattanj and parts
thereof)” is taxable @ 18% with effect from 15-11-2017.
5.8 Clause (a) of para 6 of Schedule-II as notified u/s 7 of CGST Act,
GST LAW TIMES  27th August 2020  99