The Andhra Pradesh Authority for Advance Ruling ruled that the construction of a 20 MT Cold Storage building for the primary processing centre beneath the Mega park scheme attracts 12% GST.
The applicant, M/s YVR, and Co are in the construction work of commercial/industrial buildings and civil structures. Some of the civil works contracts were provided to the petitioner by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC). The petitioner would not furnish an application to find out the subject GST rate on the work done.
The applicant submitted that APIIC avails that it is a Government company and works given to them would be treated 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 petitioner mentioned that the Construction of a 20 MT Cold Storage Building for the Primary Processing Centre works come beneath sl.no. 3 of constructions services clause V (e) of notification no 11/2017 Central Tax (Rate) with, the subjected rate of tax as 12% (CGST and SGST each).
The authority revealed that APIIC would be a Government Entity for the GST concerns. The council sees that the works performed by the petitioner would come beneath 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) ruled that the Construction of a 20 MT Cold Storage Building towards the Primary Processing Centre beneath the Mega park scheme is classified under V (e) of sl. No. 3 under heading 9954 Construction services of GST notification No: 11/2017 with the applicable rate of tax at 12%. on behalf of the applicant, Mr Y V Ratnam appeared.
