Classification of service— In the instant case, the applicant M/s Shree constructions doing works to Telangana State Tourism Development Corporation Limited (TSTDCL) which is a State Government Entity.

QUESTIONS RAISED:

Q1. The rate applicable for the works contract service provided to the Telangana State Tourism Development Corporation Limited by way of construction of building on their land. Whether it is 12% as the Telangana State Tourism Development Corporation Limited is wholly owned by the Government of Telangana or 18% as the Telangana State Tourism Development Corporation Limited is a business entity and collecting fee from its customers.

Held that— Applicant is a Government entity fall under the Entry at S.No. 3(vi) of Notification No. 11/2017 and therefore attract a concessional rate of tax in the capacity of contracts made to Government entity @6% CGST & SGST upto 31.12.2021 as this entry was amended to exclude Government Entity & Government authority vide Notification No. 15/2021 dt: 18.11.2021 so that now the rate of tax for works executed from 01.01.2022 is 9% CGST & SGST each.