The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that no acknowledged rate of 12% GST relevant for work engagement services supplied to the Kerala State Electricity Board. According to the given order, the implementation of civil works of Pazhassi Sagar Small Hydroelectric project to the petitioner, R.S. Development and Construction Pvt. Ltd. the Kerala State Electricity Board has been recognized.
According to this order, it includes the construction of intake structure, leading channel, tunnel powerhouse, tailrace, civil works of the switchyard access roads and other allied works, fabrication, and erection of Steel liners and specials from tunnel portal to powerhouse trash rack, intake gate, draft tube gate, and Hoisting arrangements.
Under Sl No. 3(iii)(b) or 3(vi) of Notification No.11/2017-Central Tax (Rate) dated June 28, 2017, attracting 12% GST the petitioner has urged advance ruling on the grounds of the implementation of the civil works of Pazhassi Sagar Small Hydro Electric project stated from the above order.
The lower court held that the rate of 6% below Sl. No. 3(111) or Sl. No. 3(vi) of the Notification No. 11/2017 Central Tax (Rate) dated June 28, 2017, is not eligible for Works Contract Services furnished through the petitioner to the KSEB in the Work Order No. 06/CE CCN/2017-18 on October 6, 2017.
The two judges Shyam Raj Prasad Anand Singh specified that Kerala State Electricity Board Ltd comes below the government entity for the privilege purpose.
Under Work order No. 06/CEECCN/ 2017-18 dated October 6, 2017, the council moreover sees that the given services in context to the implementation of the civil works on Pazhassi small hydroelectric project come under the work order built by the petitioner to the Kerala State Electricity Board Ltd are not liable for the acknowledged rate of 6% CGST given in the notification No. 11/2017-Central Tax (Rate) dated June 28, 2017.
Thus petitioner who is giving the services will not be liable for the concessional price of SGST 6% relevant to notification No. SRO 370/2017 on June 30, 2017, following the CGST statutory provisions are pari materia under the procurement of state GST.
