Case Law Details
In re GVS Projects Private Limited (GST AAR Andhra Pradesh)
1. Whether APSPDCL & APEPDCL is a Government authority/ Government Entity or not?
The Applicant Contractees i.e. APSPDCL and AEPDCL are Government Companies i.e. wholly owned by the Government of Andhra Pradesh. When a copy of Audited Annual Accounts of M/s APSPDCL and APEPDCL are examined, it is evident from the schedule of Equity Share Capital of the Annual Statement that 100% share capital is held by the Government of Andhra Pradesh in the name of Honourable Governor of Andhra Pradesh. Thus, based on the above facts, it is concluded that the Government of Andhra Pradesh is having full control over the APSPDCL and APEPDCL and they are covered under the definition of Government Entities.
2. What is the applicable rate of GST on work agreement entered into with the APSPDCL & APEPDCL, Under which Notification the work would fall, for discharging the GST liability and Whether for the value of materials recovered from RA bills issued on cost recovery basis by APSPDCL & APEPDCL is liable to tax under RCM as per Notification No.13/2017 Central Tax (Rate) dated 28.06.2017 or not ?
The applicant is engaged in the execution of works awarded by M/s. APEPDCL and APSPDCL for 1) Construction of Indoor Sub-station with control Room and all civil works. 2) Electrical Works 3) providing bore well 4) Erection of 33 KV line with 100 Sqmm AAA conductor (DC) 5) Erection of 11 KV line with 100 Sqmm conductor 6) Erection of 33 KV UG cable 7) Erection of 11 KV UG cable. For all the civil works, where materials such as sand, metal, gravel etc., are involved, the rates are inclusive of seigniorage charges as fixed by the Competent Authority of Government of AP and the same will be recovered from the contract bills for remittance to the Government. Materials such as Power Transformers, 100 Sqmm Conductor & Station Transformer will be supplied by department. In some agreements all the materials are in Contractor’s scope. Now the works under discussion have been undertaken to execute/ implement various schemes for constructing sub stations, providing bore wells, erection of lines and required conductors etc. Moreover, the above works undertaken by APSPDCL and APEPDCL are for business purpose and the benefit of concessional Rate of 12% (6% under Central tax and 6% State tax) as per notification is NOT available to the applicant.
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