Case Law Details
In re Uralungal Labour Contract Co-operative Society Ltd (GST AAR Kerala)
Malabar Cancer Centre, a society registered under the Societies Registration Act is established by the State Government under the administrative control of the Department of Health and Family Welfare as a comprehensive cancer centre to provide oncology care and treatment to the general public. The control and management of Malabar Cancer Centre is vested in the Governing Body consisting of 23 members of which the Hon’ble Chief Minister of Kerala is the Chairman. The members of the Governing Body and Executive Committee hold their position by virtue of their official positions in the Government of Kerala and also as nominated by the State Government. Further, public health is a function entrusted to a Municipality as well as to a Panchayat under Article 243W and Article 243G respectively of the Constitution. Therefore, it is evident that Malabar Cancer Centre is a society established by the State Government with 100 per cent participation by way of equity or control, to carry out the function of public health a function entrusted to a municipality as well as a panchayat under Article 243W and Article 243G respectively of the Constitution and accordingly falls within the definition of governmental authority under Para 4 (ix of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017.
7.11. Based a, the discussion above, we conclude that the services rendered by the applican– to Malabar Cancer Centre as detailed in the application are eligible for the concessional rate of tax of 12% [6% – CGST+ 6% – SGST] prescribed in the entry at SI No. 3(vi) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as Malabar Cancer Centre is a governmental authority as per definition of governmental authority in Para 4 (ix) of Notification on No. 11/2017 Central Tax (Rate) dated 28.06.2017. However, consequent to the issue of Notification No. 22/2021 Central Tax (Rate) dated 31.12.2021 amending the entry at SI No. 3 (vi) of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 with effect from 01.01.2022 the concessional rate in terms of the said entry at SI No. 3 (vi) shall be applicable only till 31.12.2021 and thereafter from 01.01.2022, the applicant shall be liable to pay GST at the rate of 18% [9% – CGST + 9%- SGST] as per entry at SI No. 3 (xii) of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KERALA
1. M/s. Uralungal Labour Contract Co-operative Society Ltd [ULCCS] (hereinafter referred to as the applicant) is registered under the Kerala Co-operative Societies Act, 1969. The applicant is primarily engaged in the construction of roads, bridges and other public infrastructure for the Government and other institutions and is an accredited agency for the Government of Kerala.
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