{"id":279734,"date":"2022-12-16T11:30:58","date_gmt":"2022-12-16T06:00:58","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=279734"},"modified":"2022-12-29T12:58:56","modified_gmt":"2022-12-29T07:28:56","slug":"tsaar-works-executed-for-the-governmental-entity-or-authority-will-be-taxable-at-9-cgst-sgst-each-legal-research-legal-news-updates","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/12\/16\/tsaar-works-executed-for-the-governmental-entity-or-authority-will-be-taxable-at-9-cgst-sgst-each-legal-research-legal-news-updates\/","title":{"rendered":"TSAAR| Works executed for the Governmental Entity or Authority will be taxable at 9% CGST and SGST each"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"text-indent: 18pt;\">&#160; &#160;<\/p>\n<p style=\"margin-bottom: 3%;\"><b>Telangana State Authority for Advance Ruling:<\/b> In an application questioning the rate applicable for the works contract service provided to the Telangana State Industrial Infrastructure Corporation Limited (&#8216;TSIICL&#8217;) which is wholly owned by the Government of Telangana by way of construction of building on their land, the two-member bench of S.V. Kasi Vishweshwara Rao and Sahil Inamdar has held that as the applicant is executing contract of construction of ware-houses and cold storage godowns for TSIICL who in turn are letting out these facilities for rent. Therefore, the rate of tax applicable on these contracts is 9% CGST and SGST.<\/p>\n<p style=\"margin-bottom: 3%;\">The Authority said that as seen from the contract, it is for construction of warehouse &amp; cold storage at primary processing. Further, the applicant has also averred that these godowns will be given for rent by TSIICL. Therefore, the concessional rate of tax is not applicable to this transaction and tax payable will be 9% CGST and SGST each. Further, this entry was amended in 2021 and the phrases &#8216;Government Entity&#8217; &amp; &#8216;Governmental Authority&#8217; were deleted from the Entry at S.No. 3(vi) of Notification No. 11\/2017. Thus, it was held that the works executed even for the &#8216;Governmental Entity or &#8216;Government Authority&#8217; will be taxable at 9% CGST &amp; SGST each.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Shree Constructions, In re, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/702BD8R8\">2022 SCC OnLine TS AAR-GST 28<\/a>, decided on 8-12-22<\/span>]<\/p>\n<hr\/>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Apoorva Goel, Editorial Assistant has reported this brief.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p><i>The Authority said that as the applicant entered into agreements with TSIICL for execution of contracts of buildings, warehouses, godowns , and TSIICL in turn let out the godowns for its customers on rent which amounts to use of the constructed premises for the purpose of business, thus, tax will be applicable at the rate of 9 percent CGST and SGST each.<\/i><\/p>\n","protected":false},"author":67011,"featured_media":279737,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31468,3],"tags":[29698,51288,53578,6241,48482,2621,53577,53576],"class_list":["post-279734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aar","category-casebriefs","tag-cgst","tag-government-authority","tag-government-entity","tag-gst","tag-sgst","tag-Tax","tag-telangana-state-industrial-infrastructure-corporation-limited","tag-tsaar"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>TSAAR| Works executed for the Governmental Entity or Authority will be taxable at 9% CGST and SGST each | SCC Times<\/title>\n<meta name=\"description\" content=\"In an 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