Classification of service— The Present application has been filed by the applicant (M/s. KPC Projects Ltd.), seeking an advance ruling in respect of the following questions.

1. In view of the construction services provided by the applicant to UPRNN, is the applicant eligible to avail the concessional rate of GST at 12% as prescribed in of S. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended?

2. If not, what is the appropriate rate and classification of GST to be charged by the applicant?

The applicant has been awarded a Work Order for “Construction of 228 Nos. Type-III Staff quarters at D Nagar, Andheri (W), Mumbai, Maharashtra”, the scope of which requires the applicant to construct the quarters for Employee State Insurance Corporation (“ESIC”), a statutory body under Ministry of Labour & Employment, Govt of India.

The applicant has submitted that, since they are rendering a Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017, provided to the Uttar Pradesh Rajkiya Nirman Nigam Ltd., (“UPRNN”), a Govt of Uttar Pradesh Undertaking i.e. a Governmental Authority/Government Entity by way of construction of Staff Quarters for ESIC, it is construction of “a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession” and therefore, provisions of Sr. No. 3 (vi) to Notification No. 11/2017-CTR dt 28.06.2017 as amended, is applicable to their supply attracting concessional rate of GST @ 12%.

As per Notification No. 15/2021 – (CTR) with effect from 01.01.2022, the impugned services supplied by the applicant will not be covered under Sr. No. 3 (vi) of Notification No. 11/2021 - CTR dated 28.06.2017 as amended from time to time.

Held that— In view of the above, this authority hold that the applicant is not eligible to avail the concessional rate of GST at 12% as prescribed in of S. No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 for the impugned construction services provided by them to UPRNN.

The second question raised by the applicant is if the impugned service is not covered under Sr.No. 3 (vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, then what is the appropriate classification and rate of GST to be charged by the applicant.

Since the impugned service is expected to commence only at a future date, in view of the amended Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, the impugned activity is not classifiable under Sr. No. 3 (vi) mentioned above and the said activity will be covered under the residuary clause (xii) of Sr. No. 3 of Notification No. 11/2017- mentioned above and the rate of GST to be paid by the applicant will be 18% of the taxable value.