Classification of service— The Present application has been filed by the applicant (Kpc projects ltd), the applicant, 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?

M/s. Kpc projects ltd., the applicant has been awarded a Work Order for “Construction of 200 bedded ESI Hospital at Butibori, Nagpur, Maharashtra”, the scope of which requires the applicant to construct the entire hospital for Employee State Insurance Corporation (“ESIC”), a statutory body under the ownership of Ministry of Labour and Employment, Government 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 a clinical establishment i.e. a hospital, the provisions of Sr. No. 3 (vi) to Notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended, are applicable to its supply and therefore the concessional rate of GST would be @ 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 notification, this authority held that the applicant is not of 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 covered under Sr. No. 3 (vi) mentioned above and therefore 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.