Recently the Karnataka Authority for Advance Rulings (AAR) made the decision for their institutions that function as per the municipally entrusted code to be under the government authorities and would be applicable with the 18 per cent GST.
The Indian Hume pipe company which is also the applicant, in this case, mentioned that the contract that has been undertaken for the construction of the sumps, head works, pump rooms jointing, laying of pipeline and the Maintenant as well as commissioning of the complete work of the water supply project, facilities, sewerage projects.
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The clients of the firms are well under the municipalities, local bodies, authorities, entities, and government bodies. The contract was awarded to the applicant by the M/S. Bangalore Water Supply and Sewerage Board (BWSS) to complete the work of the replacement, remodelling, and rehabilitation of the sewer lines.
Also, the consideration was seen BWSSB was the setup board by the Bangalore Water Supply and Sewerage and cannot be mentioned in the state government authority.
Also, if we consider section 3 of the BWSSB Act of 1964, the BWSSB members are appointed by the government of the state. Since BWSSB has been set up by the state legislature act for the functioning of the municipality work is entrusted under article 243W of the Constitution, which is also the authority of government.
The Additional Commissioner of Commercial Taxes Member (State) MP Ravi prasad and the Additional Commissioner of Customs & Indirect Taxes Member (Central) Sri. T. Kiran Reddy, saw that the BWSSB is a government body and the BWSSB receiving such services from the applicant are under entry 3 (xii) of GST Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, vide with the notifications and is duly regarded for the 18 per cent GST by the applicant Manish Goel.
