Classification of service— In the instant case, the applicant is engaged in construction services and is one of the successful bidders of online global open e-tenders floated by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC), a Government of Andhra Pradesh undertaking and got selected for the below mentioned work:

“providing interior works, furniture and internal electrification in the area allotted to the Hon'ble Minister for Industries at APIIC Tower in IT park, Mangalagiri, Guntur, Andhra Pradesh”.

The scope of work order requires the applicant to install internal and external electrification works, furniture, floorings and landscaping for a non-residential / commercial building.

The applicant seeks advance ruling on the following:

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

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

The issue to be decided is whether the applicant is eligible to avail the concessional rate of GST at 12% as prescribed in SI.No.3(vi) of the Notification no. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time.

The Government of India, vide notification No. 11/2017 - Central Tax (Rate), dated – 28th June 2017 notified the rate of GST applicable on supply of services. The said notification has been amended from time to time.

Held that— the contract entered by the applicant is classifiable under SAC heading No. 9954 under construction services, with entry no (ii) of serial No.3 of notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 i.e., Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017 and the applicable rate of tax is 18% (9% under Central Tax and 9% State Tax).