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The applicant is not 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) for construction services provided to the Andhra Pradesh High Grade Steels Ltd, it will be appropriately classifiable under SAC 9954 and taxable @18%.

Classification of service— In the instant case, the applicant is one of the successful bidders and entered into a contract with APHSL for providing the following works:

"Construction of APHSL project Office, cafeteria and residential quarters with BUA of 16,000 sq. ft with foundation, super structure with structural steel columns (PEB structure), Architectural finishes, Internal Electrical, internal plumping, HVAC works and IT works at APHSL, Kadapa, Andhra Pradesh.”

The scope of present work order requires the applicant to construct the project office, cafeteria and residential campus with super structure, finishes, internal electrical and plumbing, HVAC systems along with IT works. They had entered into an agreement in bond no. 01/CE/APHSL/2020-21 dt: 23.11.2020 with the Chief Engineer of APHSL for the above works.

The applicant seeks advance ruling on the following:

1. In view of the services provided by the applicant to APHSL., 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 Sl.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 appropriate classification is 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).

The applicant is not 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) for construction services provided to the Andhra Pradesh High Grade Steels Ltd, it will be appropriately classifiable under SAC 9954 and taxable @18%.

Classification of service— In the instant case, the applicant is one of the successful bidders and entered into a contract with APHSL for providing the following works:

The applicant seeks advance ruling on the following:

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