The Andhra Pradesh Authority for Advance Ruling has held that the construction of a 20 MT Cold Storage building for the primary processing center under the Mega park scheme attracts 12% GST.
The applicant, M/s YVR, and Co. are engaged in construction services in respect of commercial/industrial buildings and civil structures. Certain civil works were awarded to the applicant by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC). The applicant had filed an application to ascertain the applicable tax rate on the executed work.
The applicant submitted that APIIC claims that it is a Government company and works executed to them shall be considered as works executed for the Government of Andhra Pradesh under category VI (a) of the notification No 11/2017 Central Tax (Rate) with the applicable rate of tax (CGST and SGST) for works numbered 1 to 6 as 12%.
The applicant further submitted that the Construction of a 20 MT Cold Storage Building for the Primary Processing Centre works come under sl.no. 3 of constructions services clause V (e) of notification no 11/2017 Central Tax (Rate) with, the applicable rate of tax as 12% (CGST and SGST each).
The Authority observed that the APIIC is a Government Entity for the purpose of GST matters. The Authority further observed that the works executed by the applicant are classifiable under SAC Heading No. 9954 under construction services, entry no (ii) of serial No.3 of notification no. 11/2017 Central Tax (Rate) i.e., Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017, and the applicable rate of tax is 18% (9% under Central Tax and 9% State Tax).
The Coram of Mr. D. Ramesh, Member (State Tax) and Mr. RV Pradhamesh Bhanu, Member (Central Tax) has held that the Construction of a 20 MT Cold Storage Building for Primary Processing Centre under Mega park scheme classified under V (e) of sl. No. 3 under heading 9954 Construction services of notification No: 11/2017 with applicable rate of tax at 12%.
Mr. Y V Ratnam appeared on behalf of the applicant.
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