Concessional GST on co-operative mill construction depends on Government Entity status and non-industrial use of the completed buildings
Notes
GST
Concessional GST on specified works contracts supplied to a Government Entity requires an eligible recipient and civil or original works predominantly intended for use other than commerce, industry, business or profession. Registration under co-operative societies legislation does not itself establish that a society was created by statute, while project funding and supervision do not prove governmental establishment. The governmental-establishment route also requires at least 90% participation through equity or control, and procurement must relate to entrusted work. For the disputed spinning-mill works, governmental establishment was not proved, and the factory buildings were independently intended for industrial and commercial use, so the residual 18% aggregate GST rate applied. Social objectives and administrative approvals do not override the notified conditions or rate.
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