Page 210 - GSTL_3rd September 2020_Vol 40_Part 1

144 GST LAW TIMES [ Vol. 40
contract” as a contract for building, construction, fabrication, completion, erec-
tion, installation, fitting out, improvement, modification, repair, maintenance,
renovation, alteration or commissioning of any immovable property wherein
transfer of property in goods (whether as goods or in some other) is involved in
the execution of such contract;
The composite supply works contract as defined at Section 2 of CGST
Act, 2017 and TGST Act, 2017 is treated as supply of service in terms of Serial No.
6, Schedule-II of CGST Act, 2017 and TGST Act, 2017.
As seen from the nature of the work stated by applicant in Contract
agreement with M/s. Odisha Power Transmission Corporation Limited, Jana-
path, Bhubaneswar, the works are of Industrial nature as those works are to be
done to industrial feeders too. The contractee is not rendering any non-
commercial services as the structure arising out of works contract services will be
used by M/s. OPTCL for the purpose of commerce, and even in situations where
it “appears” that the structure is pre-dominantly meant for non-commercial pur-
poses, it turns out that they get reimbursed for their activity on behalf of their
customers from the State Government, which by no stretch of imagination can be
called as “Non-commercial”.
Therefore, since the works are used for commercial/business purpose
the benefit of Concessional Rate of 12% (6% under Central Tax and 6% State Tax)
or any other concessional rate is NOT available to the applicant.
We find that the services rendered by the applicant squarely falls under
the works contract and fall under Entry No. (ii) of S. No. 3 of the Not. No.
11/2017-C.T. (R), dated 28-6-2017 (as amended) and corresponding notifications
under TGST Act, 2017, and the applicable rate of tax is 18% (9% CGST + 9%
SGST) for the period from 1-7-2017 to 31-3-2019.
It is further observed that Entry No. (ii) of S. No. 3 was omitted w.e.f.
1-4-2019 by Not. No. 3/2019-C.T. (R), dated 29-3-2019. Nevertheless, we find that
Entry No. (xii) of S. No. 3 of Not. No. 11/2017-Central Tax (Rate), dated 28-6-
2017 (as amended) prescribes rate of tax is 18% (9% CGST + 9% SGST) in respect
of constructions not specified under entry numbers other than (i), (ia), (ib), (ic),
(id), (ie), (if), (iii), (iv), (v), (va), (vi), (vii), (viii), (ix), (x) and (xi) of S. No. (3). For
the period from 1-4-2019, the services rendered by the applicant fall under the
said residual entry and attract rate of tax @ 18% (9% CGST + 9% SGST).
ADVANCE RULING
8. In view of the observations stated above, the following rulings are is-
sued :

Question Advance Ruling issued
(i) Whether EPC contract in respect of (a) Services Rendered to M/s. OPTCL
power distribution and transmis- falls under services provided to a
sion company fall under the cate- Government entity.
gory of “Government Entity” as (b) The applicable rate of tax is 18% (9%
per GST Notification Number CGST + 9% SGST) for the services re-
1/2018-Central Tax (Rate), if so the ferred to by the applicant.
rate of GST applicable

_______
GST LAW TIMES  3rd September 2020  226