Case Law Details
In re Sealwel Corporation Private Limited (GST AAR Telangana)
We notice from the schedule concerning ‘Shareholding of Promoter’ of the annual accounts of M/s TSSPDCL that 100% shares of the company were held by the Hon’ble Governor of Telangana. This clear indicates that the Government of Telangana have 100 percent control over TSSPDCL and thus TSSPDCL is evidently covered under the definition of ‘Government Entity’.
The next issue to be decided in this regard is whether the impugned services supplied by the applicant are for the works which are used for other than commerce, industry, or any other business or profession. As per the details furnished by the applicant in the Annexure -II enclosed to the application, the works undertaken are for execution/implementation of various projects for (i) Capacitor Bank Works in Nalgonda etc.; (ii) HVDS-High Voltage Distribution Systems in Suryapet used for agricultural feeders. The applicant further stated that the Government of Telangana is reimbursing the money to M/s TSSPDCL on behalf of the customers for agricultural services rendered. Thus, M/s TSSPDCL is not rendering any non-commercial services in as much as they are getting reimbursed for their activity on behalf of their customers. Therefore, this activity cannot be termed as other than commercial/business purposes.
We therefore opine that the impugned works undertaken are for business/commercial purposes and therefore, the benefit of Concessional Rate of 12% (6% CGST + 6% SGST) is not applicable to the services supplied by the applicant. Further, we notice that the services supplied by the applicant are subjected to 18% (9%CGST + 9%SGST) in terms of SI. No. 3(xii) of Not. No. 11/2017-CT (R) dated 28.06.2017 (as amended).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TELANGANA
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