2018 (12) TMI 591 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 309 (A. A. R. – GST) – Government Entity or not – N/N. 31/2017-Central Tax (Rate) dated 13 October 2017 – CIDCO is a Government Entity or not – rate of tax – whether taxable at the rate of 12% or not?. – Power Supply Infrastructure Development work.
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Held that:- CIDCO is constituted and established by the State Government of Maharashtra with 100% participation by way Of Equity or Control to carry out the function of development of new township of New Bombay and therefore CIDCO is clearly covered under the definition of ‘Government Entity’.
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Rate of tax – concessional rate of GST @ 12%, with effect from 13.10.2017, as effected by the amendment in Notification No. 11/2017 – Held that:- CIDCO is covered under the definition of ‘Government Entity’ inserted as an amendment in the original Notification No 11/2017-CT(Rate) dated 28.06.2017 vide Notification No. 31/2017-CT(Rate) dated 13.10.2017.
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nature of works contracts allotted to the applicant, it is found that the works to be undertaken by them can be considered as “original work”.
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Thus, the works undertaken by them are in the nature of original works.
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Whether they are fulfilling the conditions in respect of Government Entity as inserted vide Notification No. 31/ 2017 dated 13.10.2017? – Held that:- The application does not have any explanation/ evidence to substantiate the fulfillment of this condition. However in terms of paras 3 & 4 of Govt. of Maharashtra Resolution dated 25.06.2014, the work of rehabilitation and resettlement with respect to Navi Mumbai International Airport has been given to M/s. CIDCO. As such condition in Column 5 of the Table is fulfilled as far as the first contract (work order) dated 21.06.2017 is concerned – As regards other contract (work order) dated 11.01.2013, the same is to be completed in Ulwe Node. As per Notification dated 20.03.1971 issued by Government of Maharashtra Ulwe
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D SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by LEENA POWER TECH ENGINEERS PVT LTD, the applicant, seeking an advance ruling in respect of the following ISSUE.. 1. Whether CIDCO is covered under the definition of the term Government Entity as per Notification No. 31/2017-Central Tax (Rate) dated 13 October 2017? 2. If CIDCO falls under the definition of Government Entity, Then Kindly also Clarify Whether the tax rate of 12% (CGST 6% + SGST 6%) is applicable to the contract entered into by the Applicant with CIDCO, in pursuance of Notification No. 24/2017 – Central Tax (Rate) dated 21 September 2017 read with Notification No. 31/2017 – Central Tax (Rate) dated 13 O
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Industrial Development Corporation of Maharashtra Limited ( CIDCO ), a 100% Government of Maharashtra owned Public sector Undertaking, is incorporated on 17th March 1970 under company s act 1956 as a Company having CIN – U9999MH1970SGC014574, registered Company limited by shares and as a State Government Company. Copy of the document from the Ministry of Corporate Affairs mentioning details about CIDCO is attached herewith for your reference. 3. CIDCO had invited a bid / tender for Power Supply Infrastructure Development work at various places in Navi Mumbai, including Ulwe. The contract involves composite activities of supply of material, laying of power cables, erection of the equipments and civil constructions associated with such erection. 4. The Applicant upon successful bid have been awarded the following contracts a. Power supply Infrastructure Development work at R & R (Rehabilitation & Resettlement) Pockets under NMIA(Navi Mumbai International Airport) Projects, Navi M
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cant s interpretation of law and/or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant s view point and submissions on issues on which the advance ruling is sought). A. CIDCO is covered under the definition of Government Entity vide Notification No.31/2017 – Central Tax (Rate) 13th October 2017 1. Without prejudice to the facts of the case, it is submitted that CIDCO shall be covered under the definition of the term Government Entity. 2. The term Government Entity is defined in the Notification No. 31/2017 – Central Tax (Rate) dated 13 October 2017. The relevant portion of the definition is reproduced below: Government Entity means an authority or a board or any other body including a society, trust, corporation, V set up by an Act of Parliament or State Legislature; or i) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union
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town development in the above area will not only provide relief to Bombay City but will also accelerate the promotion of industries in the State and open out and speed up industrial development of the Konkan Region. Decongestion of industrial and office concentration in Bombay has now become an urgent problem and the proposed development of the above new township, if undertaken quickly, could save the situation even now from getting out of control. The projects is of such a character that involves planning and development of all sectors including commerce, trade, housing, etc. to combine into a well-balanced and well-planned township. After careful consideration of the relevant factors, and particularly, in view of the tremendous impact this project will have on the industrial development of Maharashtra, Government has come to the conclusion that a subsidiary company of the State Industrial and Investment Corporation of Maharashtra, Bombay, would be a appropriate agency which would be
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he control and supervision of the State Government in the General Administration Department. By and order and in the name of the Governor of Maharashtra. b. Govt. of Maharashtra Notification dt. 20.3.1971, reproduced verbatim : URBAN DEVELOPMENT. PUBLIC HEALTH AND HOUSING DEPARTMENT Sachivalaya. Bombay, 20the March 1971 Maharashtra Regional Planning and Planning Act, 1966 No. RPB. 1171-18124-1-W- Whereas, the State Government is satisfied that it is expedient in public interest that the said area should be developed as a site for the proposed new town: Now, therefore, in exercise of the powers conferred by sub-section (1) of section 113 of the said Act, the Government of Maharashtra hereby designates the said area as the site for the proposed new town, which shall be known by the name of New Bombay . And, whereas, having regard to the complexity and magnitude of the work involved in developing the area comprised in the site of the new town aforesaid the time which may be required for s
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arashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966), the Government of Maharashtra hereby declares the said subsidiary company to be the New Town Development Authority for the area comprised in the Site of New Bombay. By order and in the name of the Governor of Maharashtra. C. Govt. of Maharashtra Resolution dt. 24.1.1972, reproduced verbatim: General Administration Department Sachivalaya, Bombay, 24th January, 1972 Resolution No. CID-2072-U Read: Government Resolution, Industries and Labour Department No. IDL-5770/IND-I, Dated 18th March, 1970 RESOLUTION: Government has decided to entrust to the City and Industrial Development Corporation of Maharashtra Limited, as New Town Development Authority, the task of development of the New City in Thana, Panvel and uran tahsils of Thana and Kolaba districts, and to acquire the privately owned land in that area for that project. The question of financing the development work Of City and Industrial Development Corporation of Maha
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ncurred by the Government on the acquisition of such lands should be treated as Government s own capital outlay and debited to the appropriate head of account and such lands on acquisition shall vest in the Corporation establishing New Bombay. 4) The Corporation may make On Account Advance Payment to Government from the proceeds of land disposal to meet Government expenditure on capital outlayon account of payment of compensation for land acquisition for New Bombay. 5) Such On Account Advance Payment made by the Corporation should be adjusted in due course. This Resolution issues with concurrence of the Finance Department vide its unofficial reference No.; 145/72/F-12 dated 24th January, 1972. 5. Further, the Company is fully controlled by the State Government of Maharashtra with 100% shareholding by the State Government by way of equity and control. The list of shareholders of CIDCO are as follows: Sr.No. Name of the Shareholder 1 Shri. Shriram Yadav, Deputy Secretary, Urban Developme
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ms of urban congestion in Bombay city.; to attract Some of Bombay s population and absorb immigrants who would otherwise come to Bombay; b. To reduce traffic congestion and burden on Bombay s physical infrastructure such as road transport, mass rapid transportation system C. To provide physical and social services which would raise living standards and reduce disparities in the amenities available to different sections of the society; d. To provide an environment which permits the citizens of the proposed new city to live fuller and richer life, free of physical and social tensions commonly associated with urban living; e. To facilitate efficient and rational distribution of industries over the State, balancing development of urban centres in the hinterland; f. To provide training and all possible facilities to the existing local people in the project area, to enable them to adapt to the new urban setting and actively participate in the economic and social life of the new city. 7. It i
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ction, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of- (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i)an educational, (ii) a clinical, or(iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017 6 The contract undertaken by the applicant is Original Works 3. The term original works have not been defined under GST Act. However, the definition under the erstwhile Finance Act, 1994 is reproduced below: Original work means – i) All new constructions; ii) All types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; iii) Erection, commissioning
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r use other than Commerce, Industry, Business or Profession. 7. It is reiterated and emphasized that CIDCO is a Public Sector Undertaking incorporated as a Company to undertake functions entrusted by the State Government. Further, the basic function of CIDCO is to undertake town planning and development of areas so designated. 8. The supply of electricity to any human settlement township, city or district is a basic infrastructure essential for creation of such township. Given this such activity of establishing power supply networks by CIDCO is for creation of a new town for rehabilitation and resettlement of project affected people. 9. The Hon ble Income Tax Appellate Tribunal in case of ACIT vs. CIDCO (ITA No. 1234/Mum/2016] = 2018 (1) TMI 668 – ITAT MUMBAI has recently held that CIDCO is an agent of the State Government of Maharashtra and that the income earned by CIDCO belongs to the State and thus is not taxable. The relevant portion of the judgement is reproduced below: This obse
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lip;……… which would act as an agent of Government for the development of the areas with a view to secure the above objective , and in para no. 3 of this Resolution clearly say, The subsidiary company will work under the control and supervision of the State Government in the General Administrative Department . In our opinion, the first Resolution itself makes it clear that the assessee is to be an agent, but functions as an arm of the State Government, because, if the assessee can only work under the control and supervision of the State Government, meaning thereby that the assessee cannot make / take any decisions suo moto, then, in such a case authority for performance of all activities lie somewhere else. In any case, as per this Resolution, it clearly makes the assessee an agent of the State. 41. When we look into the financial functions of the assessee, we find that all dealings have to be routed through authorizations by the Government and all funds receivable
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ashik, Nagpur etc. This, itself shows that the assessee is acting totally on behalf of the Government. Another distinguishing feature that can be seen in that as soon as the Project is complete, the project gets handed back to the State, i.e. when there is a development project, as per phases, and in the case of local authority, as and when the authorizing committee is satisfied, the reins are transferred to the municipal boards, from whom, the project was taken over, as we have seen from Resolution no. 10375 dated 06/08/2010. 43. In tune with these observations, read with sections 113 & 113A of MR&TP Act along with Articles 289(1) & 289(3) and holding that the assessee corporation is not doing any trade activity on its own accord, we hold, relying on the decision of the Hon ble Bombay High Court in the assessee s own case, in the Writ Petition, following the decision Percival case (2009 (11) TMI 889 – BOMBAY HIGH COURT), wherein it has been held, that CIDCO, the assessee h
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eant for the residential location demarcated by CIDCO. For instance, the Power Supply Infrastructure Development work at R & R (Resettlement & Rehabilitation) Pockets under NMIA (Navi Mumbai International Airport) Projects, Navi Mumbai (Work Order No. CIDCO/EE(Elect-AP)/AP-001/2017/172 dated 21 June 2017] is for the Project Affected People of the Navi Mumbai International Airport Project. 12. Similarly, the following projects are also undertaken for the residential locations of the respective nodes viz a. Development of power supply infrastructure distribution network including construction of 33KV substation equipment & construction of 11/0.4 KV HT substation & allied electrical works in Ulwe Node, Navi Mumbai (Phase – 1) Priority – I & Il [Work order No. CIDCO/EE(Elect-11)/E-1419/2013/109 dated 11 January 2013 Copies Of the work order for the above contracts are attached herewith for your reference. 13. Given this, the original works constructed by the Applicant a
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31/2017 – Central Tax (Rate) dated 13 October 2017? Response Yes, the contracts undertaken by the Applicant shall be covered by the notification no. 31/2017 for reasons elaborated above. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be Seen thus- As required the details with respect to applicant M/s. Leena Powertech Engineers Pvt. Ltd. (the appellant for short) and comments on the application filed by them for advance ruling are submitted as under: (a) Classification of Service/Services as applicable. i. Works contract service. ii. Election Commissioning and Installation Service. iii. Rent a Cab service (Under RCM) iv. Security / detective agency service (Under RCM) v. Legal Consultancy Service (Under RCM) vi. Manpower Supply Agency (Under RCM) (b) Rate/ rates of Service Tax as applicable to Services provided i) 15% after abatement as per law (on above services except Sr. no. ii) 15% on Sr. no. li above, (c) Details of benefits of notificat
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aying of power cables, transformers, RMU panels & other related civil work essentially leading to setting up of power supply networks with various government authority & entities.. (iii) The applicant has been awarded following work contracts by CIDCO: a. Power supply infrastructure Development work at R & R (Rehabilitation & Resettlement) Pockets under NMIA (Navi Mumbai International Airport) Projects, Navi Mumbai (Work Order No CIDCO/EE (Elect-AP)/ AP-001/2017/172 dtd.21.06.2017) for the project affected people of the Navi Mumbai International Airport Project. b. Development of power supply infrastructure distribution network including construction of 33KV substation equipment & construction of 11/0.4 KV HT substation & allied electrical works in Ulwe Node, Navi Mumbai (Phase -1) Priority – & 11 (Work order No. CIDCO/EE(Elect-111419/2013/109 dated 11.01.2013. With effect from 22.08.2017, their services were covered by item (vi) attracting Central. Tax @ 9%
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Tax Act, 2017, supplied to the Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. 6 – (iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a road, bridge, tunnel, or terminal for road transportation for use by general public; (b) a civil structure or any othe
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lways, excluding monorail and metro; (b) a single residential unit otherwise than as a part of a residential complex; (c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under- (1) the Affordable Housing in Partnership component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (e) post harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. 6 (vi) Services provided to the Central 6 Gov
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vi) (b) to insert condition in column No. 5 in items (iii) & (vi) (c) to substitute item No. (vii) (d) to insert Explanation (ix) & (x) in para 4 (vi) Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 was further amended vide Notification No.46/2017-Central Tax (Rate) dated 14.11.2017 to substitute the words Service the words Composite Supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided . Therefore; Notification No.11/2017-Central Tax (Rate) dated 28.062017 as amended vide Notification No. 46/2017 reads as under: Sl.No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 1. Chapter 99 All Services 2. Section 5 Construction services 3. Heading 9954 (Construction Services) (i) Construction of a complex, building, civil structure or a port thereof, including a complex or building intended for sale to a buyer, wholly or partly; except where the entire consi
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(24 of 1958);(b) canal, dam or Other irrigation works; (c) pipeline, conduit or plant for (1) water supply (ii) water treatment, or (iii) sewerage treatment or disposal 6 Provided that where the services are supplied to Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be (iv) Composite supply of works contract as 6 defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of; (a) a rood, bridge, tunnel, or terminal for road transportation for use by general public; (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; (c) a civil structure or any Other original works pe
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of 60 square meters per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (d) low cost houses up to a carpet area of 60 square meters per house in a housing project approved by the competent authority under- (1) the Affordable Housing in Partnership component of the Housing for All (Urban) Mission Pradhan Mantri Awas Yojana; (2) any housing scheme of a State Government; (e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. (vi) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided to the Central Government, State Government, Union Territory, a
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use (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent of the value of the work contract) provided to the Central Government, State Government, Union territory, local authority; a Governmental Authority or a Government Entity. 2.5 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a (ix) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii)and (viii) above, 9 Explanation (ix) Governmental Authority means an authority or a board or any other body, – (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243G of the Constitution. (x) Government Entity means
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s below whether CIDCO is covered under the definition of the term Government Entity as per Notification No. 31/2017 -Central Tax (Rate) dated 13.10.2017. a. Govt. of Maharashtra Resolution dt.18.3.1970 : Government has come to the conclusion that a subsidiary company of the State Industrial and Investment Corporation of Maharashtra, Bombay, would be a appropriate agency which would be entrusted with the present project. Government is accordingly pleased to allow the State Industrial and Investment Corporation of Maharashtra Limited, as required under Article 75 of the its Memorandum and Articles of Association, with the object of veloping the trans-Thana and capital of ₹ 5 crores, with object of developing the trans-Thana and trans-Harbour areas in the Thana and Kolaba districts as a twin city to provide relief to Bombay City and also to ensure its integrated development with the industrial development of this region and the State. The Land proposed to be acquired by Government i
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b-section (3A) of section 113 of Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966), the Government of Maharashtra hereby declares the said subsidiary company to be the New Town Development Authority for the area comprised in the site of New Bombay. C. Govt. of Maharashtra Resolution dt. 24.1.1972: Government has decided to entrust to the City and Industrial Development Corporation of Maharashtra Limited, as New Town Development Authority, the task of development of the New City in Thana, Panvel and uran tahsils of Thana and Kolaba districts, and to acquire the privately-owned land in that area for that project. The question of financing the development work of City and Industrial Development Corporation of Maharashtra Limited has been under consideration for some time. Government is now pleased to issue the following instructions: 1) The Corporation should undertake all the development work, provide the social and physical infrastructure to attain the objectives la
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ration may make On Account Advance Payment to Government from the proceeds of land disposal to meet Government expenditure on capital out layon account of payment of compensation for land acquisition for New Bombay. 5) Such On Account Advance Payment made by the Corporation should be adjusted in due course. (ix) In view of the foregoing, it is observed that CIDCO is established by State Government who holds 100% control. Therefore CIDCO appears to be a Government Entity in terms of Explanation (x) to Notification No. 11/2017-Central Tax (Rate)as amended. (x) The other question is as to whether the tax rate of 12% (CGST 6% + SGST 6%) is applicable to the contract entered into by the assessee with CIDCO, in terms of Notification No. 11/2017-Central Tax (Rate) as amended by Notification No. 24/2017- Central Tax (Rate) dated 21.09.2017 read with Notification N031/2017 – Central Tax (Rate) dated 13.10.2017. The assessee in the application for advance ruling has stated that their services ar
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complex predominantly meant for self-use or the use of their employees or Other persons specified in paragraph 3 of the Schedule Ill of the Central Goods and Services Tax Act, 2017 6 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory local authority, as the case may be (xi) The applicant in their application for advance ruling has stated that the contracts undertaken by them are original works, that the term original works has not been defined in GST Act, that as per the definition under the erstwhile Finance Act, 199 i) All new constructions, ii) All types of additions and alterations to abandoned or damaged structure on land that are required to make them workable; iii) Erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise. Takin into consideration
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ntity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. The application does not have any explanation/evidence to substantiate the fulfillment of this condition. However in terms of paras 3 & 4 of Govt. of Maharashtra Resolution dated 25.06.2014, the work of rehabilitation and resettlement with respect to Navi Mumbai International Airport has been given to M/s. CIDCO. As such condition in Column 5 of the Table is fulfilled as far as the first contract (work order) dated 2106.2017 is concerned. As regards other contract (work order) dated 11.01.2013, the same is to be completed in Ulwe Node. As per Notification dated 20,03.1971 issued by Government of Maharashtra Ulwe is notified as a site for development. In this case also, the condition in Column 5 of the Table is fulfilled. (xiv) Therefore applicant is eligible for benefit of Sr. No. 3 of ite
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S. V. Apte Advocate along with Sh. Amit Tekchandani, C. & M. D, and Sh. Ashish Singh Advocate appeared and made oral and written submissions. Jurisdictional Officer, Sh. U.S. Rananaware, Suptt., CGST, Belapur appeared and stated that they have already made written submissions. 05. OBSERVATIONS We have gone through the detailed submissions and contentions made by the applicant and the department which have been reproduced in verbatim above. First of all we take up the first question raised by the applicant which reads as under:- Question 1:- Whether CIDCO is covered under the definition of the term Government Entity as per Notification No. 31/2017 – Central Tax (Rate) dated 13 October 2017? With respect to the above question we need to have a look at Notification No. 31/2017 Central Tax (Rate) dated 13th October, 2017. From the questions raised by the applicant we find that the applicant does not have any doubt in respect of his tax liabilities prior to this Notification No. 31/201
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, namely:- In the said notification, (i) in the Table, – (a) against serial number 3, – A. in item (iii), in column (3), for the words Government, a local authority or a Governmental authority , the words Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity shall be substituted; B. in item (vi), in column (3), for the words a local authority or a Governmental authority the words a local authority, a Governmental Authority or a Government Entity shall be substituted; C. in items (iii) and (vi), in column (5), for the existing entry, the following entry shall be substituted, namely: – Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be ; …………………………&
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ments as effected by the above Notification No. 31/2017, the original Notification No. 11/2017-CT(Rate) dated 28.06.2017 was amended last by Notification No. 24/2017-CT (Rate) dated 21.09.2017 and the relevant portion of the same for the present case is as under:- Notification No. 24/2017-Central Tax (Rate) In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.11/2017- Central Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28thJ
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on services other than (i), (ii), (iii), (iv), (v) and (vi) above. 9 NOW With the amendment as brought out by Notification 31/2017 mentioned above, the relevant entry in the original Notification 11/2017 dated 28th June, 2017 reads as under:- Sl.No. Chapter, Section or Heading. Description of Service Rate (per cent.) Condition 1 2 3 4 5 1. Chapter 99 All Services 2. Section 5 Construction Services 3. Heading 9954 (Construction services) (i) …………………………. 9 (ii) ………………………… 9 (iii) ………………………… 6 Provided … … … (iv) ………………………… 6 (v) ………………………… 6 (vi) Composite supply of works contract as defined in clause (119) of section 2 of
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Government, Union territory or local authority, as the case may be (vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent of the value of the work contract) provided to the Central Government, State Government, Union territory, local authority; a Governmental Authority or a Government Entity. 2.5 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a… … … (ix) Construction services other than Ii), (ii), (iii), (iv), (v), (vi), (vii)and (viii) above. 9 In view of the above factual position, we are required to ascertain whether CIDCO would be covered under the definition of Government Entity as given in Notification No. 31/2017 dated 13.10.2017 referred above. We find that the definition of Government Entity as given in this Notificat
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s in Bombay and With a view generally to resolve the problems of urban congestion in Bombay City. The development of these areas will also have to be integrated with the development of an industrial base in Maharashtra for exporting industries. With the growing support that the Central Government is giving to export oriented industries, the contemplated new town development in the above area will not only provide relief to Bombay City but will also accelerate the promotion of industries in the State and open out and speed up industrial development of the Konkan Region. Decongestion of industrial and office concentration in Bombay has now become an urgent problem and the proposed development of the above new township, if undertaken quickly, could save the situation even now from getting out of control. The projects is of such a character that involves planning and development of all sectors including commerce, trade, housing, etc. to combine into a well-balanced and well-planned townshi
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rbour areas should be entrusted to the subsidiary company, which would act as an agent of Government for the development of the areas with a view to secure the above objectives. The subsidiary company will in due course be notified as New Town Development Authority under the Maharashtra Regional and Town Planning Act. The subsidiary company will work under the control and supervision of the State Government in the General Administration Department. (II) Thereafter we find that the Government of Maharashtra vide Notification dated 20.03.1971 and vide Resolution dated 24.01.1972 constituted CIDCO as a company fully controlled by the State Government of Maharashtra with 100% shareholding by the State Government by was of Equity and Control which would be clear from the Notification and Resolution as under:- Govt. of Maharashtra Notification dt. 20.3.1971. reproduced verbatim : URBAN DEVELOPMENT. PUBLIC HEALTH AND HOUSING DEPARTMENT Sachivalaya. Bombay, 20the March. 1971 Maharashtra Region
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is of opinion that such work of development of the area comprised in the site of New Bombay should be entrusted to subsidiary company mentioned hereinafter: And whereas, the City and Industrial Development Corporation of Maharashtra Limited, registered under the Companies Act, 1956 ( 1 of 1956), a subsidiary company of the State Industrial and Investment Corporation of Maharashtra, a company owned and controlled by the State is at present equipped with the machinery for undertaking and completing the work involved speedily in developing any area as a new town. Now, therefore in exercise of the power conferred by the sub-section(3A) of section 113 of Maharashtra Regional and Town Planning Act, 1966 (Mah. XXXVII of 1966), the Government of Maharashtra hereby declares the said subsidiary company to be the New Town Development Authority for the area comprised in the site of New Bombay. By order and in the name of the Governor of Maharashtra. Govt. of Maharashtra Resolution dt. 24.1.1972,
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, dated 18th March, 1970, on behalf of the Government and to dispose of land to the extent appropriate. It should also rehabilitate the persons displace from the land acquired for the Project. 2) From the proceeds collected out of such disposals, the Corporation should recoup the expenditure it incurs on the items referred to in sub-para(1) above, inclusive of administrative expenses thereon, plus agency remuneration at ₹ 3.00 lacs, for the year ended 31st March, 1971 to be increased each year by ₹ 1.00 Iacs, subject to a maximum of ₹ 5.00 lacs for any one year, before remitting the remained to the Government. 3) The expenditure incurred by the Government on the acquisition of such lands should be treated as Governments s own capital outlay and debited to the appropriate head of account and such lands on acquisition shall vest in the Corporation eastablishing New Bombay. 4) The Corporation may make On Account Advance Payment to Government from the proceeds of land dis
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suance of Notification No. 24/2017 – Central Tax (Rate) dated 21 September2017 read with Notification No. 31/2017-Central Tax (Rate) dated 13 October 2017? In view of the detailed discussions above, we find that CIDCO is covered under the definition of Government Entity inserted as an amendment in the original Notification No 11/2017-CT(Rate) dated 28.06.2017 vide Notification No. 31/2017-CT(Rate) dated 13.10.2017. Thus now we would examine the claim of the applicant for concessional rate of GST @ 12%, with effect from 13.10.2017, as effected by the amendment in Notification No. 11/2017 as amended and updated through present amendment made by Notification 31/2017. We find that the applicant is claiming that they:- i. Are providing services to a Government Entity which is CIDCO in this case. ii. Are providing services by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintainance, renovation or alteration of (a) any other original works mean
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a) applicant in their application for advance ruling has stated that the contracts undertaken by them are original works, that the term original works has not been defined in GST Act, that as per the definition under the erstwhile Finance Act, 1994, i) All new constructions, ii) All types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; iii) Erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise. Taking into consideration the nature or contracts. (b) As per para 1.3.1 of CPWD Manual, 2014, original works means (i) all new constructions, (ii) all types of additions, alterations and/ or special repairs to newly acquired assets, abandoned or damaged assets that are required to make them workable. (iii) major replacements or remodeling of a portion of an existing structure or installation or other works, which results in a genuine increase in the life and val
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tral Tax @6% in terms of Notfn. No. 11/2017-Central Tax (Rate) as amended by Notfn. No. 24/2017 – Central Tax (Rate), the condition is where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. The application does not have any explanation/ evidence to substantiate the fulfillment of this condition. However in terms of paras 3 & 4 of Govt. of Maharashtra Resolution dated 25.06.2014, the work of rehabilitation and resettlement with respect to Navi Mumbai International Airport has been given to M/s. CIDCO. As such condition in Column 5 of the Table is fulfilled as far as the first contract (work order) dated 21.06.2017 is concerned. As regards other contract (work order) dated 11.01.2013, the same is to be completed in Ulwe Node. As per Notification dated 20.03.1971 issued by Government of Maharashtra
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