In re KMV Projects Limited (GST AAR Karnataka)
a. Works contract services executed to Public works Department, Government of Karnataka, for Construction of Airport Terminal Building in Shivamogga are liable to tax at 9% CGST as per entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate), dated: 28.06.2017 .
b. Works contract services executed to Public works Department, Government of Karnataka, for Development of Greenfield Airport at Vijayapura are liable to tax at 9% CGST as per entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate), dated: 28.06.2017 .
c. Works contract services executed to Karnataka State Police Housing and Infrastructure Corporation Limited for Construction of High Security Prison are liable to tax at 9% CGST w.e.f. 01.01.2022 as per entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate), dated: 28.06.2017 , as amended vide Notification No.22/2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/2022 Central Tax Rate, Dtd: 13.07.2022 .
d. Works contract services executed to Kudala Sangama Development Board for Construction of Basava International Center and Museum at Kudalasangama are liable to tax at 9% CGST w.e.f. 01.01.2022 as per entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate), dated: 28.06.2017, as amended vide Notification No.22/2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/2022 Central Tax Rate, Dtd: 13.07.2022 .
e. Works contract services executed to Karnataka Residential Educational Institutions Society for Construction of Residential school complex in Chittapur are liable to tax at 9% CGST w.e.f. 01.01.2022 as per entry No. 3(xii) of Notification No. 11/2017-Central Tax (Rate), dated: 28.06.2017, as amended vide Notification No.22/2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/2022 Central Tax Rate, Dtd: 13.07.2022
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
M/s. KMV Projects Limited, (hereinafter H.NO.1-U66/9D, 4th Floor, AIWAN-E-SHAHI referred to as The applicant’), ROAD, AIWAN-E-SHAHI Colony, Kalaburagi-585102 having GSTIN 29AADCK0785C1ZL have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
2. The Applicant is a Public Limited Company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The Applicant is involved in construction activity of government works (buildings) and not with private parties.
3. The applicant has sought advance ruling in respect of the following questions:-
i. Applicable GST rates with regards to,-
a. Government works contract services of Airport Terminal Building at Sogane Village in Shivamogga taluk and District, Karnataka.
b. Work received from Public Works Department for Development of Greenfield Airport at Vijaypur in Karnataka State.
c. Work received from Karnataka State Police Housing and Infrastructure Development Corporation Limited for construction of High Security Prison at Central Prison, Parappana Agrahara, Bangalore Karnataka State.
d. Work received from Commissioner, Kudalasangam Development Board, Kudalasangam for construction of Basava International Center and Museum at Kudalasangam of Hunagunda Taluka in Bagalkot District.
e. Work received from Karnataka Residential Educational Institutions Society for construction of Government School Buildings and Hostels at various places in Karnataka State.
4. Admissibility of the application:
The question is about the “determination of the liability to pay tax on any goods or services or both” and hence is admissible under Section 97(2)(e) of the CGST Act 2017.
5. BRIEF FACTS OF THE CASE:
The applicant furnishes some facts relevant to the issue:
5.1 The applicant states that they have been awarded following works and wants to know the applicable rate of GST on the same.-
i. Airport Terminal Building at Sogane Village in Shivamogga taluk and District, Karnataka.
ii. Greenfield Airport at Vijaypur in Karnataka State.
iii. Construction of High Security Prison at Central Prison, Parappana Agrahara, Bangalore Karnataka State.
iv. Construction of Basava International Center and Museum at Kudalasangam of Hunagunda Taluka in Bagalkot District.
v. Construction of Government School Buildings and Hostels at various places in Karnataka State.
5.2 The applicant states that Government of India through Ministry of Finance has issued a Notification No.15/2021 dated 18/11/2021-Central Tax (Rate), where the rate of GST on certain works contract services provided to Government Authority and Government Entity has been increased from 12% to 18% w.e.f., 01-01-2022. In view of this notification, the applicant seeks ruling on the applicable rate of GST on the works awarded to them.
PERSONAL HEARING / PROCEEDINGS HELD ON 07-07-2022
6. Shri A. Bhaskar Reddy, Assistant General Manager of M/s KMV Projects Ltd and Duly Authorised Representative appeared for personal hearing proceedings held on 07.07.2022 and reiterated the facts narrated in their application.
FINDINGS & DISCUSSION
7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act.
8. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applicant and also their submissions made during the time of hearing.
9. The Applicant is a Public Limited Company, engaged in providing works contract services. The Applicant states that they have been awarded following contracts from the State Government and its various institutions. The Applicant wants to know the applicable rate of GST on the execution of works awarded to him in view of Notification No. 15/2021 Central Tax (Rate), dated 18.11.2021.
