In re Gowri Infra Engineering Private Limited (GST AAR Karnataka)
a) Whether the activity undertaken by the applicant is covered under section 2(119) of the CGST Act, 2018 read with point 6 Schedule II of the CGST Act, 2017 read with the Karnataka GST Act, 2017 and the IGST Act, 2017?
The applicant is constructing a Housing Project at two places in and around Bangalore. The Bangalore Development Authority in its tender has stated that it has taken up construction of housing in and around Bangalore City as designed by the Government of Karnataka. Since this is a residential project for general public, the same is not covered under clause (b) or (c).
Conjoint reading of the entry with reference to the applicability of clause (a) of the said entry reads as under:
“Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act provided to the Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession,
Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union Territory or local authority, as the case may be.”
The projects of the applicant are involving the supply of both goods and services and is in relation to an immovable property and hence is a “works contract” within the meaning of section 2(119) of CGST Act. This works contract is for a construction of a civil structure and since it is a residential real estate project, the works is predominantly for use other than commerce, industry or any other business or profession and hence it is covered under clause (a) of the entry 3(vi) of the Notification, subject to the conditions.
b) Whether Bangalore Development Authority is a Government Authority as per the provisions of GST Law?
Bangalore Development Authority is an authority established by the State Government under the Bangalore Development Authority Act, 1976 and it is entrusted with the activity of development of the City of Bangalore and areas adjacent thereto and for matters connected therewith.
It is very clear from the above that the control over the entity rests with the Government of Karnataka and hence the Bangalore Development Authority satisfies both the conditions and hence is considered as a Government Entity within the meaning of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017.
c) Whether the transaction covered under point 3(ii) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended? d) Whether the transaction covered under point 3(iv) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended? e) Whether transaction covered under point 3(v) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended? f) Whether transaction covered under point 3(vi) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
The transaction of the applicant would be a supply of works contract services covered under clause (a) of entry no.3(vi) of the Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 (as amended) and not under entry no. 3(ii) or 3(iv) or 3(v) of the said notification.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA)
ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS 8s SERVICES TAX ACT, 2017 AND UNDER 98(4) OF THE KARNATAKA GOODS & SERVICES TAX ACT, 2017
M/s Gowri Infra Engineers Private Limited, (called as the ‘Applicant’ hereinafter), having GSTIN number 29AADCG9044N1ZO, have filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 & GST Act 2017 read with Rule 104 of the CGST Rules, 2017 & KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the RUST Act.
2. The Applicant is a Private Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question:
a) Whether the activity undertaken by the applicant is covered under section 2(119) of the CGST Act, 2018 read with point 6 Schedule II of the CGST Act, 2017 read with the Karnataka GST Act, 2017 and the IGST Act, 2017?
b) Whether Bangalore Development Authority is a Government Authority as per the provisions of GST Law?
c) Whether the transaction covered under point 3(ii) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
d) Whether the transaction covered under point 3(iv) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
e) Whether transaction covered under point 3(v) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
f) Whether transaction covered under point 3(vi) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
3. The applicant furnishes some facts relevant to the stated activity:
a. The applicant states that he is engaged in the business of Civil Construction and Works Contract Services. The applicant has applied for the civil construction work tender with Bangalore Development Authority (BDA) with respect to construction of residential complexes / row of residential houses in the following location:
