Case Law Details
In re Ray Constructions Ltd. (GST AAR Kerala)
Applicant is carrying on business in the housing and construction sector. They are engaged in providing services of construction including materials and labour as per the tender requirements. They have received a work order from Vikram Sarabhai Space Centre for the construction of a building for space transportation system. It is a composite contract which includes supply of materials as well as service. They have also received another work order from M/s. Infrastructure Kerala Ltd, a Public Private Partnership Company promoted by Government of Kerala, for the development of Medical College, Thiruvananthapuram which includes construction of road, bridges and other infrastructure. The applicant has requested for advance ruling on the rate of tax applicable for the above works contracts awarded by the Government authorities.
AAR Ruling
The services provided by the applicant under both the contracts being composite supply of works contract as defined in clause (119) of Section 2 of the CGST Act, 2017 provided to the Central Government and State Government by way of construction, erection, commissioning or installation of a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession is covered under entry at SI No. 3 (vi) (a) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended and attract GST at the rate of 12% [6% CGST and 6% SGST].
The services provided by the applicant attract GST @ 12%
Please become a Premium member. If you are already a Premium member, login here to access the full content.
