Authority for Advance Ruling — Supply of Service to Government Entity – The applicant entered into a works contract agreement with National Centre for Biological Sciences for construction of Hostel building at NCBS Campus in Bangalore. The NCBS receives grants from the Department of Atomic Energy, GOI. The applicant submitted that the NCBS, is of the opinion that since it is a fully funded aided institute administratively controlled by the DAE and the activities of NCBS are related to the educational research, 12% rate is applicable as per the Serial No.3 of item no.(vi) of Notification No. 11/2017 - CTR dated 28.06.2017 as amended by Notification No.24/2017 – CTR dated 21.09.2017. The applicant has sought an advance ruling as to whether applicant should charge GST @12 % for service provided to NCBS as per Notification No 24/2017 CTR dated 21-09-2017.
Held that:- The Hon’ble Authority for Advance Ruling, held that NCBS is neither set up by an Act of Parliament nor by State Legislature nor is established by any Government. Further the Government does not have more than 90% control over it, therefore, NCBS is not covered under the definition of a “Government Entity”. The works contract service provided to NCBS is liable to tax at (a) 9% CGST and 9% SGST, as it is covered under item no. (xii) of Serial No.3 of Notification No.11/2017 – CTR dated 28.06.2017.—Hombale Constructions And Estates Private Limited, In Re… [2020] 24 TAXLOK.COM 024 (AAR-Karnataka)